Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 29, 2021 | Nov. 30, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 29, 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 $0.01 per share | |
Trading Symbol | DELL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001571996 | |
Current Fiscal Year End Date | --01-28 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding - Class C | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 289,981,446 | |
Entity Common Stock, Shares Outstanding - Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 378,553,250 | |
Entity Common Stock, Shares Outstanding - Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 95,350,227 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 22,406 | $ 14,201 |
Accounts receivable, net of allowance of $100 and $104 (Note 17) | 14,177 | 12,788 |
Short-term financing receivables, net of allowance of $164 and $228 (Note 3) | 4,970 | 5,155 |
Inventories | 5,442 | 3,402 |
Other current assets | 10,184 | 8,021 |
Total current assets | 57,179 | 43,567 |
Property, plant, and equipment, net | 6,925 | 6,431 |
Long-term investments | 1,827 | 1,624 |
Long-term financing receivables, net of allowance of $61 and $93 (Note 3) | 5,270 | 5,339 |
Goodwill | 40,701 | 40,829 |
Intangible assets, net | 12,319 | 14,429 |
Other non-current assets | 11,456 | 11,196 |
Total assets | 135,677 | 123,415 |
Current liabilities: | ||
Short-term debt | 16,280 | 6,362 |
Accounts payable | 26,772 | 21,696 |
Accrued and other | 10,081 | 9,549 |
Short-term deferred revenue | 16,569 | 16,525 |
Total current liabilities | 69,702 | 54,132 |
Long-term debt | 31,699 | 41,622 |
Long-term deferred revenue | 14,885 | 14,276 |
Other non-current liabilities | 5,197 | 5,360 |
Total liabilities | 121,483 | 115,390 |
Commitments and contingencies (Note 9) | ||
Redeemable shares (Note 15) | 0 | 472 |
Stockholders’ equity (deficit): | ||
Common stock and capital in excess of $0.01 par value (Note 13) | 17,843 | 16,849 |
Treasury stock at cost | (305) | (305) |
Accumulated deficit | (8,190) | (13,751) |
Accumulated other comprehensive loss | (394) | (314) |
Total Dell Technologies Inc. stockholders’ equity | 8,954 | 2,479 |
Non-controlling interests | 5,240 | 5,074 |
Total stockholders’ equity | 14,194 | 7,553 |
Total liabilities, redeemable shares, and stockholders’ equity | $ 135,677 | $ 123,415 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss | $ 100 | $ 104 |
Short-term financing receivables, allowance | 164 | 228 |
Long-term financing receivables, allowance | $ 61 | $ 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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Net revenue: | ||||
Total net revenue | $ 28,394 | $ 23,482 | $ 79,003 | $ 68,112 |
Cost of net revenue: | ||||
Total cost of net revenue | 20,335 | 16,221 | 55,301 | 46,842 |
Gross margin | 8,059 | 7,261 | 23,702 | 21,270 |
Operating expenses: | ||||
Selling, general, and administrative | 5,293 | 4,772 | 15,398 | 14,419 |
Research and development | 1,417 | 1,360 | 4,208 | 3,884 |
Total operating expenses | 6,710 | 6,132 | 19,606 | 18,303 |
Operating income | 1,349 | 1,129 | 4,096 | 2,967 |
Interest and other, net | 3,436 | 273 | 2,689 | (929) |
Income before income taxes | 4,785 | 1,402 | 6,785 | 2,038 |
Income tax expense (benefit) | 897 | 521 | 1,079 | (124) |
Net income | 3,888 | 881 | 5,706 | 2,162 |
Less: Net income attributable to non-controlling interests | 45 | 49 | 145 | 139 |
Net income attributable to Dell Technologies Inc. | $ 3,843 | $ 832 | $ 5,561 | $ 2,023 |
Earnings per share attributable to Dell Technologies Inc. | ||||
Dell Technologies Common Stock — Basic (in dollars per share) | $ 5.02 | $ 1.11 | $ 7.30 | $ 2.73 |
Dell Technologies Common Stock — Diluted (in dollars per share) | $ 4.87 | $ 1.08 | $ 7.08 | $ 2.64 |
Products | ||||
Net revenue: | ||||
Total net revenue | $ 21,540 | $ 17,352 | $ 58,968 | $ 50,127 |
Cost of net revenue: | ||||
Total cost of net revenue | 17,552 | 13,789 | 47,137 | 39,923 |
Services | ||||
Net revenue: | ||||
Total net revenue | 6,854 | 6,130 | 20,035 | 17,985 |
Cost of net revenue: | ||||
Total cost of net revenue | $ 2,783 | $ 2,432 | $ 8,164 | $ 6,919 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,888 | $ 881 | $ 5,706 | $ 2,162 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (61) | (21) | (201) | 243 |
Cash flow hedges: | ||||
Change in unrealized gains (losses) | 86 | 45 | 150 | (45) |
Reclassification adjustment for net (gains) losses included in net income | (74) | 84 | (34) | (24) |
Net change in cash flow hedges | 12 | 129 | 116 | (69) |
Pension and other postretirement plans: | ||||
Recognition of actuarial net gains (losses) from pension and other postretirement plans | 1 | 1 | 2 | (21) |
Reclassification adjustments for net (gains) losses from pension and other postretirement plans | 1 | (1) | 3 | 3 |
Net change in actuarial net gains (losses) from pension and other postretirement plans | 2 | 0 | 5 | (18) |
Total other comprehensive income (loss), net of tax expense (benefit) of $1 and $9, respectively, and $6 and $(3), respectively | (47) | 108 | (80) | 156 |
Comprehensive income, net of tax | 3,841 | 989 | 5,626 | 2,318 |
Less: Net income attributable to non-controlling interests | 45 | 49 | 145 | 139 |
Less: Other comprehensive income attributable to non-controlling interests | 0 | 1 | 0 | 0 |
Comprehensive income attributable to Dell Technologies Inc. | $ 3,796 | $ 939 | $ 5,481 | $ 2,179 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) | $ 1 | $ 9 | $ 6 | $ (3) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | ||
Cash flows from operating activities: | |||
Net income | $ 5,706 | $ 2,162 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,721 | 4,017 | |
Stock-based compensation expense | 1,406 | 1,219 | |
Deferred income taxes | (450) | (219) | |
Other, net (a) | [1] | (4,312) | (322) |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||
Accounts receivable | (1,587) | 885 | |
Financing receivables | 234 | (624) | |
Inventories | (2,063) | (198) | |
Other assets and liabilities | (1,624) | (2,175) | |
Accounts payable | 5,149 | (216) | |
Deferred revenue | 1,034 | 1,001 | |
Change in cash from operating activities | 7,214 | 5,530 | |
Cash flows from investing activities: | |||
Purchases of investments | (320) | (296) | |
Maturities and sales of investments | 454 | 98 | |
Capital expenditures and capitalized software development costs | (2,056) | (1,584) | |
Acquisition of businesses and assets, net | (16) | (405) | |
Divestitures of businesses and assets, net | 3,957 | 2,187 | |
Other | 34 | 26 | |
Change in cash from investing activities | 2,053 | 26 | |
Cash flows from financing activities: | |||
Proceeds from the issuance of common stock | 326 | 389 | |
Repurchases of parent common stock | (35) | (240) | |
Repurchases of subsidiary common stock | (1,174) | (890) | |
Proceeds from debt | 13,037 | 14,772 | |
Repayments of debt | (13,069) | (17,244) | |
Other | (113) | (270) | |
Change in cash from financing activities | (1,028) | (3,483) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (54) | (67) | |
Change in cash, cash equivalents, and restricted cash | 8,185 | 2,006 | |
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 | $ 23,369 | $ 12,157 | |
[1] | During the nine months ended October 29, 2021, other, net, includes $4.0 billion pre-tax gain on the sale of Boomi. |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Billions | Oct. 01, 2021USD ($) |
Held-for-sale | Boomi | |
Gain on sale | $ 4 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Adjustment for adoption of accounting standards | Capital in Excess of Par Value | Treasury Stock | Accumulated Deficit | Accumulated DeficitAdjustment for adoption of accounting standards | Accumulated Other Comprehensive Income (Loss) | Dell Technologies Stockholders’ Equity (Deficit) | Dell Technologies Stockholders’ Equity (Deficit)Adjustment for adoption of accounting standards | 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) | $ 16,091 | $ (65) | $ (16,891) | $ (110) | $ (709) | $ (1,574) | $ (110) | $ 4,729 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 2,162 | 2,023 | 2,023 | 139 | ||||||
Foreign currency translation adjustments | 243 | 243 | 243 | |||||||
Cash flow hedges, net change | (69) | (69) | (69) | |||||||
Pension and other post-retirement | (18) | (18) | (18) | |||||||
Issuance of common stock (in shares) | 12 | |||||||||
Issuance of common stock | 124 | $ 124 | 124 | |||||||
Stock-based compensation expense | 1,219 | 332 | 332 | 887 | ||||||
Shares repurchased (in shares) | 6 | |||||||||
Treasury stock repurchases | (240) | $ (240) | (240) | |||||||
Revaluation of redeemable shares | 102 | 102 | 102 | |||||||
Impact from equity transactions of non-controlling interests | (629) | $ 70 | 70 | (699) | ||||||
Balance, end of period (in shares) at Oct. 30, 2020 | 757 | 8 | ||||||||
Balance, end of period at Oct. 30, 2020 | 5,939 | $ 16,719 | $ (305) | (14,978) | (553) | 883 | 5,056 | |||
Balance, beginning of period (in shares) at Jul. 31, 2020 | 753 | 8 | ||||||||
Balance, beginning of period at Jul. 31, 2020 | 4,558 | $ 16,356 | $ (305) | (15,810) | (660) | (419) | 4,977 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 881 | 832 | 832 | 49 | ||||||
Foreign currency translation adjustments | (21) | (21) | (21) | |||||||
Cash flow hedges, net change | 129 | 128 | 128 | 1 | ||||||
Pension and other post-retirement | 0 | |||||||||
Issuance of common stock (in shares) | 4 | |||||||||
Issuance of common stock | 46 | $ 46 | 46 | |||||||
Stock-based compensation expense | 436 | 126 | 126 | 310 | ||||||
Revaluation of redeemable shares | 83 | 83 | 83 | |||||||
Impact from equity transactions of non-controlling interests | (173) | $ 108 | 108 | (281) | ||||||
Balance, end of period (in shares) at Oct. 30, 2020 | 757 | 8 | ||||||||
Balance, end of period at Oct. 30, 2020 | 5,939 | $ 16,719 | $ (305) | (14,978) | (553) | 883 | 5,056 | |||
Balance, beginning of period (in shares) at Jan. 29, 2021 | 761 | 8 | ||||||||
Balance, beginning of period at Jan. 29, 2021 | 7,553 | $ 16,849 | $ (305) | (13,751) | (314) | 2,479 | 5,074 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 5,706 | 5,561 | 5,561 | 145 | ||||||
Foreign currency translation adjustments | (201) | (201) | (201) | |||||||
Cash flow hedges, net change | 116 | 116 | 116 | |||||||
Pension and other post-retirement | 5 | 5 | 5 | |||||||
Issuance of common stock (in shares) | 14 | |||||||||
Issuance of common stock | 19 | $ 19 | 19 | |||||||
Stock-based compensation expense | 1,406 | 569 | 569 | 837 | ||||||
Revaluation of redeemable shares | 472 | 472 | 472 | |||||||
Impact from equity transactions of non-controlling interests | (882) | $ (66) | (66) | (816) | ||||||
Balance, end of period (in shares) at Oct. 29, 2021 | 775 | 8 | ||||||||
Balance, end of period at Oct. 29, 2021 | 14,194 | $ 17,843 | $ (305) | (8,190) | (394) | 8,954 | 5,240 | |||
Balance, beginning of period (in shares) at Jul. 30, 2021 | 773 | 8 | ||||||||
Balance, beginning of period at Jul. 30, 2021 | 9,943 | $ 17,510 | $ (305) | (12,033) | (347) | 4,825 | 5,118 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 3,888 | 3,843 | 3,843 | 45 | ||||||
Foreign currency translation adjustments | (61) | (61) | (61) | |||||||
Cash flow hedges, net change | 12 | 12 | 12 | |||||||
Pension and other post-retirement | 2 | 2 | 2 | |||||||
Issuance of common stock (in shares) | 2 | |||||||||
Issuance of common stock | (9) | $ (9) | (9) | |||||||
Stock-based compensation expense | 472 | 204 | 204 | 268 | ||||||
Impact from equity transactions of non-controlling interests | (53) | $ 138 | 138 | (191) | ||||||
Balance, end of period (in shares) at Oct. 29, 2021 | 775 | 8 | ||||||||
Balance, end of period at Oct. 29, 2021 | $ 14,194 | $ 17,843 | $ (305) | $ (8,190) | $ (394) | $ 8,954 | $ 5,240 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 9 Months Ended |
Oct. 29, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | NOTE 1 — OVERVIEW AND 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 October 29, 2021 and January 29, 2021, the results of its operations and corresponding comprehensive income (loss) for the three and nine months ended October 29, 2021 and October 30, 2020, its cash flows for the nine months ended October 29, 2021 and October 30, 2020, and its statements of stockholders’ equity for the three and nine months ended October 29, 2021 and October 30, 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 and comprehensive income (loss), cash flows, and statements of stockholders’ equity for the three and nine months ended October 29, 2021 and October 30, 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 ending January 28, 2022 (“Fiscal 2022”) and fiscal year ended January 29, 2021 (“Fiscal 2021”) 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 November 1, 2021, subsequent to the close of the Company’s third quarter of Fiscal 2022, the Company completed its previously announced spin-off of VMware, Inc. by means of a special stock dividend (the “VMware Spin-off”). The VMware Spin-off was effectuated pursuant to a Separation and Distribution Agreement, dated as of April 14, 2021 (the “Separation and Distribution Agreement”). Immediately prior to the VMware Spin-off, on November 1, 2021, VMware paid a special cash dividend of $11.5 billion, in aggregate, to VMware, Inc. common stockholders of record as of 5:00 p.m., New York City time, on October 29, 2021 (the “Record Date”), of which Dell Technologies received approximately $9.3 billion. Dell Technologies used the net proceeds from its pro rata share of the cash dividend to repay a portion of its outstanding core debt. Dell Technologies stockholders received approximately 0.440626 of a share of VMware Class A common stock for each share of Dell Technologies common stock held as of the Record Date, based on shares outstanding as of the completion of the VMware Spin-off, with no change to the capital structure of Dell Technologies. As a result of the VMware Spin-off, the pre-transaction stockholders of Dell Technologies own shares in two separate public companies, consisting of (1) VMware, Inc., which continues to own the businesses of VMware, Inc. and its subsidiaries, and (2) Dell Technologies, which continues to own Dell Technologies’ other businesses and subsidiaries. Pursuant to the Dell Technologies Inc. 2013 Stock Incentive Plan that provides for equitable adjustments in the event of a restructuring event, stock awards that were outstanding at the time of the VMware spin-off were adjusted in the ratio of approximately 1.97 to 1. The conversion ratio was based on the Company’s pre-VMware Spin-off closing stock price on November 1, 2021 and post-VMware Spin-off opening stock price on November 2, 2021. The adjustment resulted in an increase of 30.1 million restricted stock units and 1.9 million stock options. The adjustment did not result in material incremental stock-based compensation expense as it was required by the Company’s equity incentive plan. In connection with and upon completion of the VMware Spin-off, Dell Technologies and VMware, Inc. entered into various agreements that provide a framework for the relationship between the companies after the transaction, including, among others, a commercial framework agreement, a tax matters agreement, and a transition services agreement. The Commercial Framework Agreement (“CFA”) provides a framework under which the Company and VMware, Inc. will continue their strategic commercial relationship after the transaction, particularly with respect to projects mutually agreed by the parties as having the potential to accelerate the growth of an industry, product, service, or platform that may provide one or both companies with a strategic market opportunity. The CFA has an initial term of five years, with automatic one-year renewals occurring annually thereafter, subject to certain terms and conditions. The Tax Matters Agreement governs the respective rights, responsibilities, and obligations of Dell Technologies and VMware, Inc. with respect to tax liabilities (including taxes, if any, incurred as a result of any failure of the VMware Spin-off to qualify for tax-free treatment for U.S. federal income tax purposes) and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, cooperation, and other matters regarding tax. The Company will report VMware, Inc. results as discontinued operations beginning in the fourth quarter of Fiscal 2022. See Note 5 and Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information regarding debt repayments and the completion of the VMware Spin-off. Boomi Divestiture — On October 1, 2021, Dell Technologies completed the sale of Boomi and certain related assets to Francisco Partners and TPG Capital. At the completion of the sale, the Company received total cash consideration of approximately $4.0 billion, resulting in a pre-tax gain on sale of $4.0 billion. The Company ultimately recorded a $3.0 billion gain, net of $1.0 billion in tax expense. The transaction was intended to support the Company’s focus on fueling growth initiatives through targeted investments to modernize Dell Technologies’ core infrastructure and by expanding in high-priority areas, including hybrid and private cloud, edge, telecommunications solutions, and the Company’s APEX offerings. Prior to the divestiture, Boomi’s operating results were included within Other businesses and did not qualify for presentation as a discontinued operation. 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. EMC Merger Transaction — On September 7, 2016, the Company completed its acquisition of EMC Corporation (“EMC”) by merger (the “EMC merger transaction”). Recently Issued Accounting Pronouncements Accounting for Contract Assets and Contract Liabilities from Contracts with Customers — In October 2021, the Financial Accounting Standards Board (“FASB”) issued guidance which requires companies to apply Topic 606, Revenue from Contracts with Customers , to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact and timing of adoption of this guidance. Reference Rate Reform — In March 2020, the 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 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 | 9 Months Ended |
Oct. 29, 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 and recorded at fair value on a recurring basis as of the dates indicated: October 29, 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: Money market funds $ 16,757 $ — $ — $ 16,757 $ 8,846 $ — $ — $ 8,846 Equity and other securities 155 — — 155 449 — — 449 Derivative instruments — 195 — 195 — 104 — 104 Total assets $ 16,912 $ 195 $ — $ 17,107 $ 9,295 $ 104 $ — $ 9,399 Liabilities: Derivative instruments $ — $ 100 $ — $ 100 $ — $ 133 $ — $ 133 Total liabilities $ — $ 100 $ — $ 100 $ — $ 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 October 29, 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 $361 million and $308 million as of October 29, 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 October 29, 2021 and January 29, 2021, the Company held private strategic investments of $1.3 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: October 29, 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 $ 22.8 $ 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 VMware Notes $ 10.7 $ 11.1 $ 4.7 $ 5.3 Margin Loan Facility $ — $ — $ 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 and its affiliates (“DFS”) 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. Outstanding debt is recorded at carrying value and, as such, is not included in the recurring fair value table above. Investments The following table presents the carrying value of the Company’s investments as of the dates indicated: October 29, 2021 January 29, 2021 Cost Unrealized Gain Unrealized (Loss) Carrying Value Cost Unrealized Gain Unrealized (Loss) Carrying Value (in millions) Equity and other securities $ 1,236 $ 488 $ (224) $ 1,500 $ 907 $ 677 $ (145) $ 1,439 Fixed income debt securities 333 — (6) 327 176 9 — 185 Total securities $ 1,827 $ 1,624 Equity and other securities — The Company has strategic investments in publicly-traded and privately-held companies. For the nine months ended October 29, 2021, the equity and other securities without readily determinable fair values of $1.3 billion increased by $411 million, primarily due to upward adjustments for observable price changes of $448 million, partially offset by $37 million of downward adjustments that were 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 | 9 Months Ended |
Oct. 29, 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 Company further strengthens customer relationships through flexible consumption models, which enable the Company to offer its customers the option to pay over time and, in certain cases, based on utilization, to provide them with financial flexibility to meet their changing technological requirements. 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 $2.0 billion and $2.1 billion for the three months ended October 29, 2021 and October 30, 2020, respectively, and $5.8 billion and $6.5 billion for the nine months ended October 29, 2021 and October 30, 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. 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: October 29, 2021 January 29, 2021 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross (a) $ 705 $ 9,495 $ 10,200 $ 796 $ 9,595 $ 10,391 Allowances for losses (112) (113) (225) (148) (173) (321) Customer receivables, net 593 9,382 9,975 648 9,422 10,070 Residual interest — 265 265 — 424 424 Financing receivables, net $ 593 $ 9,647 $ 10,240 $ 648 $ 9,846 $ 10,494 Short-term $ 593 $ 4,377 $ 4,970 $ 648 $ 4,507 $ 5,155 Long-term $ — $ 5,270 $ 5,270 $ — $ 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 October 29, 2021 October 30, 2020 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 126 $ 161 $ 287 $ 143 $ 180 $ 323 Charge-offs, net of recoveries (9) (20) (29) (13) (6) (19) Provision charged to income statement (5) (28) (33) 12 (9) 3 Balances at end of period $ 112 $ 113 $ 225 $ 142 $ 165 $ 307 Nine Months Ended October 29, 2021 October 30, 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 — — — 40 71 111 Charge-offs, net of recoveries (32) (25) (57) (51) (22) (73) Provision charged to income statement (4) (35) (39) 83 37 120 Balances at end of period $ 112 $ 113 $ 225 $ 142 $ 165 $ 307 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: October 29, 2021 January 29, 2021 Current Past Due Past Due Total Current Past Due Past Due Total (in millions) Revolving — DPA $ 485 $ 34 $ 10 $ 529 $ 578 $ 30 $ 13 $ 621 Revolving — DBC 157 16 3 176 157 14 4 175 Fixed-term — Consumer and Commercial 9,063 411 21 9,495 9,192 316 87 9,595 Total customer receivables, gross $ 9,705 $ 461 $ 34 $ 10,200 $ 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 present customer receivables, gross, including accrued interest, by credit quality indicator segregated by class and year of origination, as of the dates indicated: October 29, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2022 2021 2020 2019 2018 Years Prior Revolving — DPA Revolving — DBC Total (in millions) Higher $ 2,441 $ 2,055 $ 1,108 $ 297 $ 45 $ 5 $ 135 $ 45 $ 6,131 Mid 765 863 426 126 24 1 163 55 2,423 Lower 486 515 267 60 10 1 231 76 1,646 Total $ 3,692 $ 3,433 $ 1,801 $ 483 $ 79 $ 7 $ 529 $ 176 $ 10,200 January 29, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2021 2020 2019 2018 2017 Years Prior Revolving — DPA Revolving — DBC 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 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 $59 million and $69 million for the three months ended October 29, 2021 and October 30, 2020, respectively, and $186 million and $200 million for the nine months ended October 29, 2021, and October 30, 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Net revenue — products $ 183 $ 184 $ 607 $ 648 Cost of net revenue — products 162 102 467 435 Gross margin — products $ 21 $ 82 $ 140 $ 213 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: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 775 Fiscal 2023 2,207 Fiscal 2024 1,445 Fiscal 2025 735 Fiscal 2026 and beyond 335 Total undiscounted cash flows 5,497 Fixed-term loans 4,620 Revolving loans 705 Less: unearned income (622) Total customer receivables, gross $ 10,200 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: October 29, 2021 January 29, 2021 (in millions) Equipment under operating lease, gross $ 2,367 $ 1,746 Less: accumulated depreciation (787) (432) Equipment under operating lease, net $ 1,580 $ 1,314 The following table presents operating lease income related to lease payments and depreciation expense for the Company’s operating lease portfolio for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Income related to lease payments $187 $120 $510 $310 Depreciation expense $140 $92 $383 $228 The following table presents the future payments to be received by the Company as lessor in operating lease contracts as of the date indicated: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 220 Fiscal 2023 702 Fiscal 2024 437 Fiscal 2025 189 Fiscal 2026 and beyond 21 Total $ 1,569 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. October 29, 2021 January 29, 2021 (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 2,650 $ 3,311 Fixed-term securitization offerings 3,618 2,961 Other 147 140 Total DFS U.S. debt 6,415 6,412 DFS international debt: Securitization facility 751 786 Other borrowings 809 1,006 Note payable 250 250 Dell Bank Senior Unsecured Eurobonds 1,752 1,212 Total DFS international debt 3,562 3,254 Total DFS debt $ 9,977 $ 9,666 Total short-term DFS debt $ 5,475 $ 4,888 Total long-term DFS debt $ 4,502 $ 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. lease and loan 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 October 29, 2021, the total debt capacity related to the U.S. asset-based financing and securitization facilities was $4.5 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 July 10, 2023 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 October 29, 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 0.18% 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 had a total debt capacity of $934 million as of October 29, 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 October 29, 2021, these criteria were met. Other Borrowings — In connection with the Company’s international financing operations, the Company enters 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 lease and loan payments and associated equipment, had a total debt capacity of $364 million as of October 29, 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 $701 million as of October 29, 2021, and is effective through December 14, 2023. 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 $339 million as of October 29, 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 October 29, 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., a wholly-owned subsidiary of Dell Technologies Inc., 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 500 million Euro of 1.625% senior unsecured four year eurobonds due June 2024. On October 27, 2021, Dell Bank International D.A.C. issued 500 million Euro of 0.5% senior unsecured five year eurobonds due October 2026. 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: October 29, 2021 January 29, 2021 (in millions) Assets held by consolidated VIEs Other current assets $ 843 $ 838 Financing receivables, net of allowance Short-term $ 3,467 $ 3,534 Long-term $ 3,294 $ 3,314 Property, plant, and equipment, net $ 874 $ 792 Liabilities held by consolidated VIEs Debt, net of unamortized debt issuance costs Short-term $ 4,180 $ 4,208 Long-term $ 2,826 $ 2,841 Loan and lease payments and associated equipment transferred via securitization through SPEs were $1.4 billion and $1.6 billion for the three months ended October 29, 2021 and October 30, 2020, respectively, and $4.1 billion and $4.6 billion for the nine months ended October 29, 2021 and October 30, 2020, respectively. Customer Receivables Sales |
LEASES
LEASES | 9 Months Ended |
Oct. 29, 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 October 29, 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 October 29, 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Operating lease costs $ 129 $ 129 $ 404 $ 384 Variable costs 35 37 97 113 Total lease costs $ 164 $ 166 $ 501 $ 497 During both the nine months ended October 29, 2021 and October 30, 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 October 29, 2021 January 29, 2021 (in millions, except for term and discount rate) Operating lease right of use assets Other non-current assets $ 1,953 $ 2,117 Current operating lease liabilities Accrued and other current liabilities $ 439 $ 436 Non-current operating lease liabilities Other non-current liabilities 1,657 1,787 Total operating lease liabilities $ 2,096 $ 2,223 Weighted-average remaining lease term (in years) 8.75 8.85 Weighted-average discount rate 3.18 % 3.47 % The following table presents supplemental cash flow information related to leases for the periods indicated: Nine Months Ended October 29, 2021 October 30, 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities — $ 379 $ 384 Right-of-Use assets obtained in exchange for new operating lease liabilities $ 232 $ 763 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: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 111 Fiscal 2023 475 Fiscal 2024 374 Fiscal 2025 276 Fiscal 2026 228 Thereafter 995 Total lease payments 2,459 Less: Imputed interest (363) Total $ 2,096 Current operating lease liabilities $ 439 Non-current operating lease liabilities $ 1,657 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 October 29, 2021, the Company has additional operating leases that have not yet commenced representing $64 million of undiscounted lease liabilities. These operating leases will commence in the remaining three months of Fiscal 2022 or Fiscal 2023 with lease terms of one year to 10 years. |
DEBT
DEBT | 9 Months Ended |
Oct. 29, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 5 — DEBT The following table presents the Company’s outstanding debt as of the dates indicated: October 29, 2021 January 29, 2021 (in millions) Secured Debt Senior Secured Credit Facilities: 2.00% Term Loan B-2 Facility due September 2025 (a) $ 3,120 $ 3,143 1.84% Term Loan A-6 Facility due March 2024 (a) 3,134 3,134 First Lien Notes: 5.45% due June 2023 (a) 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 (a) 1,625 1,625 EMC Notes: 3.375% due June 2023 — 1,000 VMware Notes: 2.95% due August 2022 1,500 1,500 0.60% due August 2023 1,000 — 1.00% due August 2024 1,250 — 4.50% due May 2025 750 750 1.40% due August 2026 1,500 — 4.65% due May 2027 500 500 3.90% due August 2027 1,250 1,250 1.80% due August 2028 750 — 4.70% due May 2030 750 750 2.20% due August 2031 1,500 — DFS Debt (Note 3) 9,977 9,666 Other 2.44% Margin Loan Facility due April 2022 — 4,000 Other 400 235 Total debt, principal amount $ 48,458 $ 48,480 October 29, 2021 January 29, 2021 (in millions) Total debt, principal amount $ 48,458 $ 48,480 Unamortized discount, net of unamortized premium (175) (194) Debt issuance costs (304) (302) Total debt, carrying value $ 47,979 $ 47,984 Total short-term debt, carrying value (b) $ 16,280 $ 6,362 Total long-term debt, carrying value $ 31,699 $ 41,622 ____________________ (a) Subsequent to October 29, 2021, the Company used the net proceeds from its $9.3 billion pro rata share of the cash dividend received in connection with the VMware Spin-off, as well as cash on hand, to repay $3.12 billion principal amount of the 2.00% Term Loan B-2 Facility due September 2025, $3.13 billion principal amount of the 1.84% Term Loan A-6 Facility due March 2024, $1.63 billion principal amount of the 7.125% Senior Notes due June 2024, and $1.50 billion principal amount of the 5.45% First Lien Notes due June 2023. (b) Given the probability of the close of the VMware Spin-off and the Company’s intent and ability to repay, the Company classified $9.4 billion principal amount of debt as short-term liabilities on the Condensed Consolidated Statements of Financial Position as of October 29, 2021. During the nine months ended October 29, 2021, the net decrease in the Company’s debt balance was primarily due to: • repayment of $1.0 billion principal amount of the 3.375% EMC Notes due June 2023; • repayment of $4.0 billion principal amount of the 2.44% Margin Loan Facility due April 2022; • repayment of $1.1 billion principal amount of the 5.875% Senior Notes due June 2021; and • repayment of $0.4 billion principal amount of the 4.625% Unsecured Notes due April 2021. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about debt repayments that occurred subsequent to October 29, 2021. Secured Debt Senior Secured Credit Facilities — The Company has entered into a credit agreement (the “Existing 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. The Revolving Credit Facility expires December 20, 2023. As of October 29, 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 $3.1 billion 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. Subsequent to October 29, 2021, the Company repaid the remaining $3.12 billion principal amount of the Term B-2 Loans and the remaining $3.13 billion principal amount of the Term Loan A-6 Facility. On November 1, 2021, the Company entered into a new senior secured Revolving Credit Facility (the “2021 Revolving Credit Facility”) to replace the old senior secured Revolving Credit Facility under the Existing Credit Agreement. Following the full redemption of the outstanding term loan facilities and placement of the Revolving Credit Facility, the Existing Credit Agreement was terminated. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information. First Lien Notes — Dell International L.L.C. and EMC Corporation (collectively, the “Issuers”), both of which are wholly-owned subsidiaries of Dell Technologies Inc., completed offerings of multiple series of senior secured notes (collectively, the “First Lien Notes”) pursuant to Rule 144A and Regulation S. Various series of the First Lien Notes 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 an equal and ratable basis with the Senior Secured Credit Facilities 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. In June 2021, Dell International L.L.C and EMC Corporation completed the previously announced offers to exchange any and all outstanding First Lien Notes for registered first lien notes having terms substantially identical to the terms of the First Lien Notes. The Issuers issued an aggregate $18.4 billion principal amount of registered first lien notes in exchange for the same principal amount of First Lien Notes. The aggregate principal amount of unregistered First Lien Notes remaining outstanding following the settlement of the exchange offers was approximately $0.1 billion. Following the exchange offer, such registered first lien notes, together with the remaining unregistered First Lien Notes, are collectively referred to as “First Lien Notes” in these Notes to the Condensed Consolidated Financial Statements. Subsequent to October 29, 2021, the Company repaid $1.5 billion principal amount of First Lien Notes. Further, in conjunction with the termination of the Existing Credit Agreement, the tangible and intangible assets of the issuers and guarantors that secure obligations under the Senior Secured Credit Facilities were released as collateral and the First Lien Notes became fully unsecured. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about the First Lien Notes principal repayment subsequent to October 29, 2021. 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 $3.3 billion. Interest on outstanding borrowings is payable semiannually. Subsequent to October 29, 2021, the Company repaid the remaining $1.63 billion principal amount of Senior Notes. Following the full redemption of the Senior Note, the indenture governing the Senior Notes was terminated. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about the Senior Notes principal repayment subsequent to October 29, 2021. EMC Notes — On September 7, 2016, as result of the merger with EMC, Dell acquired multiple outstanding Notes (collectively, the “EMC Notes”). During the three months ended October 29, 2021, the Company repaid the remaining $1.0 billion principal amount of the EMC Notes. VMware Notes — VMware, Inc. completed public offerings of unsecured senior notes in the aggregate amounts of $4.0 billion, $2.0 billion, and $6.0 billion on August 21, 2017, April 7, 2020, and August 2, 2021, 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 and Term Loan Facilities — On September 12, 2017, VMware, Inc. entered into an unsecured credit agreement, that established a revolving credit facility (the “VMware Revolving Credit Facility”) with a syndicate of lenders that provided the company with a borrowing capacity of up to $1.0 billion for VMware, Inc. general corporate purposes. On September 2, 2021, VMware, Inc. entered into an unsecured credit agreement establishing a revolving credit facility with a syndicate of lenders that provides VMware, Inc. with a borrowing capacity of up to $1.5 billion for general corporate purposes (the “2021 VMware Revolving Credit Facility”). The 2021 VMware Revolving Credit Facility replaced VMware, Inc.’s existing $1.0 billion revolving credit facility that was undrawn. Commitments under the 2021 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 2021 Revolving Credit Facility may vary based on VMware’s external credit ratings. As of October 29, 2021, there were no outstanding borrowings under the 2021 VMware Revolving Credit Facility. In addition, VMware, Inc. received commitments from financial institutions for a 3-year senior unsecured term loan facility and a 5-year senior unsecured term loan facility that would provide VMware, Inc. with a borrowing capacity of up to $4.0 billion (the “VMware Term Loan Facilities”). VMware, Inc. may borrow against the term loan once up to its borrowing capacity of $4.0 billion. Subsequent to October 29, 2021, and in advance of the close of the VMware Spin-off on November 1, 2021, VMware, Inc. borrowed $4.0 billion against the VMware Term Loan Facilities with the proceeds utilized to fund a portion of the special cash dividend paid by VMware, Inc. in connection with the VMware Spin-off transaction. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about the VMware Spin-off transaction. None of the net proceeds of the 2021 VMware Revolving Credit Facility or the VMware Term Loan Facilities 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. 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 $3.4 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, was the borrower under the Margin Loan Facility, which was 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 bore 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 was payable quarterly. The Margin Loan Facility was scheduled to mature in April 2022. The borrower had the option to 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. During the nine months ended October 29, 2021, the Company repaid the $4.0 billion principal amount of the Margin Loan Facility. Upon repayment, the VMware, Inc. common stock pledged to secure the Margin Loan Facility was released as collateral in accordance with the associated Margin Loan Facility agreement. Aggregate Future Maturities The following table presents the aggregate future maturities of the Company’s debt as of October 29, 2021 for the periods indicated: Maturities by Fiscal Year (a) 2022 2023 2024 2025 2026 Thereafter Total (in millions) Senior Secured Credit Facilities and First Lien Notes $ 7,754 $ — $ 2,250 $ 1,000 $ 1,000 $ 12,750 $ 24,754 Unsecured Notes and Debentures — — — — — 952 952 Senior Notes and EMC Notes 1,625 — — — — — 1,625 VMware Notes — 1,500 1,000 1,250 750 6,250 10,750 DFS Debt 1,378 5,019 1,888 1,016 86 590 9,977 Other 9 33 187 124 23 24 400 Total maturities, principal amount 10,766 6,552 5,325 3,390 1,859 20,566 48,458 Associated carrying value adjustments (94) (7) (20) (20) (6) (332) (479) Total maturities, carrying value amount $ 10,672 $ 6,545 $ 5,305 $ 3,370 $ 1,853 $ 20,234 $ 47,979 ____________________ (a) Maturities by Fiscal Year reflects $9.4 billion principal amount of debt within the remaining three months of Fiscal 2022 to align to the classification of this debt as short-term on the Condensed Consolidated Statements of Financial Position and reflect the Company’s intent to repay during the fourth quarter of Fiscal 2022. 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 October 29, 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 October 29, 2021. The Senior Secured Credit Facilities 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 October 29, 2021. Subsequent to October 29, 2021 and following the full redemption of the outstanding term loan facilities and Senior Notes, the Existing Credit Agreement and the indenture governing the Senior Notes were terminated. The 2021 Revolving Credit Facility contains customary negative covenants that generally limit the ability of Dell, Dell International L.L.C, and EMC to create liens and make fundamental changes. The 2021 Revolving Credit Facility is subject to an interest coverage ratio covenant that is tested at the end of each fiscal quarter of Dell with respect to Dell’s preceding four fiscal quarters. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about debt repayments that occurred subsequent to October 29, 2021. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Oct. 29, 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 and nine months ended October 29, 2021 and October 30, 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 four years or less. Interest rate swaps are utilized to manage the interest rate risk, at a portfolio level, associated with DFS operations in Europe. The interest rate swaps economically convert the fixed rate on financing receivables to a three-month Euribor floating rate 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 European securitization program. The cross currency swaps combine a Euro-based interest rate swap with a British Pound or U.S. Dollar foreign exchange forward contract in which the Company pays a fixed 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 October 29, 2021 January 29, 2021 (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 8,354 $ 6,840 Non-designated as hedging instruments 9,570 9,890 Total $ 17,924 $ 16,730 Interest rate contracts: Non-designated as hedging instruments $ 6,393 $ 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 October 29, 2021 Total net revenue $ 66 Foreign exchange contracts $ 86 Total cost of net revenue 8 Interest rate contracts — Interest and other, net — Total $ 86 $ 74 For the three months ended October 30, 2020 Total net revenue $ (88) Foreign exchange contracts $ 45 Total cost of net revenue 4 Interest rate contracts — Interest and other, net — Total $ 45 $ (84) For the nine months ended October 29, 2021 Total net revenue $ 31 Foreign exchange contracts $ 150 Total cost of net revenue 3 Interest rate contracts — Interest and other, net — Total $ 150 $ 34 For the nine months ended October 30, 2020 Total net revenue $ 17 Foreign exchange contracts $ (45) Total cost of net revenue 7 Interest rate contracts — Interest and other, net — Total $ (45) $ 24 Effect of Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 Location of Gain (Loss) Recognized (in millions) Gain (Loss) Recognized: Foreign exchange contracts $ (85) $ (127) $ (242) $ 87 Interest and other, net Interest rate contracts 4 1 1 (43) Interest and other, net Total $ (81) $ (126) $ (241) $ 44 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: October 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 $ 112 $ — $ 8 $ — $ 120 Foreign exchange contracts in a liability position (19) — (12) — (31) Net asset (liability) 93 — (4) — 89 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 244 — 25 — 269 Foreign exchange contracts in a liability position (159) — (82) (7) (248) Interest rate contracts in an asset position — 17 — — 17 Interest rate contracts in a liability position — — — (32) (32) Net asset (liability) 85 17 (57) (39) 6 Total derivatives at fair value $ 178 $ 17 $ (61) $ (39) $ 95 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: October 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 $ 406 $ (211) $ 195 $ — $ — $ 195 Financial liabilities (311) 211 (100) — 21 (79) Total derivative instruments $ 95 $ — $ 95 $ — $ 21 $ 116 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 | 9 Months Ended |
Oct. 29, 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. Other businesses consists of Secureworks and Virtustream which each represent separate reporting units. The following table presents goodwill allocated to the Company’s reportable segments and changes in the carrying amount of goodwill as of the dates indicated: Infrastructure Solutions Group Client Solutions Group VMware Other Businesses Total (in millions) Balance as of January 29, 2021 $ 15,324 $ 4,237 $ 20,802 $ 466 $ 40,829 Goodwill acquired — — (1) — (1) Impact of foreign currency translation (88) — — — (88) Goodwill divested (a) — — — (39) (39) Balance as of October 29, 2021 $ 15,236 $ 4,237 $ 20,801 $ 427 $ 40,701 ____________________ (a) During the three months ended October 29, 2021, Dell Technologies completed its sale of Boomi. Prior to the divestiture, Boomi was included within Other businesses. See Note 1 of the Notes to the Condensed Consolidated Financial Statements for additional information about the divestiture of Boomi. Intangible Assets The following table presents the Company’s intangible assets as of the dates indicated: October 29, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 22,387 $ (16,672) $ 5,715 $ 22,394 $ (15,448) $ 6,946 Developed technology 15,479 (12,939) 2,540 15,488 (12,136) 3,352 Trade names 1,286 (977) 309 1,285 (909) 376 Definite-lived intangible assets 39,152 (30,588) 8,564 39,167 (28,493) 10,674 Indefinite-lived trade names 3,755 — 3,755 3,755 — 3,755 Total intangible assets $ 42,907 $ (30,588) $ 12,319 $ 42,922 $ (28,493) $ 14,429 Amortization expense related to definite-lived intangible assets was approximately $0.7 billion and $0.8 billion for the three months ended October 29, 2021 and October 30, 2020, respectively, and $2.1 billion and $2.5 billion for the nine months ended October 29, 2021 and October 30, 2020, respectively. There were no material impairment charges related to intangible assets during the three and nine months ended October 29, 2021 or October 30, 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: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 589 Fiscal 2023 1,826 Fiscal 2024 1,458 Fiscal 2025 1,107 Fiscal 2026 858 Thereafter 2,726 Total $ 8,564 Goodwill and Intangible Assets Impairment Testing Goodwill and indefinite-lived intangible assets are tested for impairment annually during the third fiscal quarter and whenever events or circumstances may indicate that an impairment has occurred. For the annual impairment review in the third quarter of Fiscal 2022, 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 are dependent on internal forecasts, current and anticipated economic conditions and trends, selection of market multiples through assessment of the reporting unit’s performance relative to peer competitors, the estimation of the long-term revenue growth rate and discount rate of the Company’s business, and the determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the fair value of the goodwill reporting unit, potentially resulting in a non-cash impairment charge. The fair value of the indefinite-lived trade names is generally estimated using discounted cash flow methodologies. 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 three months ended October 29, 2021, the fair values of each of the reporting units exceeded their carrying values. No impairment test was performed during the nine months ended October 29, 2021 other than the Company’s annual impairment review. |
DEFERRED REVENUE
DEFERRED REVENUE | 9 Months Ended |
Oct. 29, 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Deferred revenue: Deferred revenue at beginning of period $ 31,843 $ 28,791 $ 30,801 $ 27,800 Revenue deferrals 5,706 5,432 18,889 17,560 Revenue recognized (6,095) (5,542) (18,092) (16,418) Other (a) — — (144) (261) Deferred revenue at end of period $ 31,454 $ 28,681 $ 31,454 $ 28,681 Short-term deferred revenue $ 16,569 $ 15,259 $ 16,569 $ 15,259 Long-term deferred revenue $ 14,885 $ 13,422 $ 14,885 $ 13,422 ____________________ (a) For the nine months ended October 29, 2021, Other consists of divested deferred revenue from the sale of Boomi. For the nine months ended October 30, 2020, Other consists of divested deferred revenue from the sale of RSA Security. See Note 1 of the Notes to the Condensed Consolidated Financial Statements for more information about the divestitures of Boomi and of RSA Security. There was no impact to deferred revenue for the three months ended October 29, 2021 or October 30, 2020 as liabilities in both instances were previously classified as held for sale. 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 October 29, 2021 was approximately $47 billion. The Company expects to recognize approximately 62% 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 in 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 | 9 Months Ended |
Oct. 29, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 — COMMITMENTS AND CONTINGENCIES Purchase Obligations The Company has contractual obligations to purchase goods or services, which specify significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. As of October 29, 2021, purchase obligations were $5.2 billion, $0.7 billion, and $0.8 billion for the remaining three months of Fiscal 2022, for Fiscal 2023, and for Fiscal 2024 and thereafter, respectively. 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. As additional information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, the Company would record related impacts to accrued liabilities in the period in which a determination is made. For some matters, the incurrence of a liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. The following is a discussion of the Company’s significant legal matters and other proceedings: Class Actions Related to the Class V Transaction — 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, Goldman Sachs & Co. LLC, 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 December 5, 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 alleging infringement of 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, VMware has filed challenges with the United States Patent and Trademark Office against each of the four patents that are subject of Cirba’s allegation. To date, of the four challenges, two ex parte reexams have been granted and one Inter Partes Review has been instituted. 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 it is unable at this time to assess whether, or to what extent, it may be found liable and, if found liable, the amount any damages that may be awarded. 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. Trial is currently scheduled to begin on July 6, 2022. Other Litigation — Dell does not currently expect that any other proceedings or 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 October 29, 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 factors, 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 | 9 Months Ended |
Oct. 29, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME AND OTHER TAXES | NOTE 10 — INCOME AND OTHER TAXES For the three months ended October 29, 2021 and October 30, 2020, the Company’s effective income tax rate was 18.7% and 37.2%, respectively, on pre-tax income of $4.8 billion and $1.4 billion, respectively. For the nine months ended October 29, 2021 and October 30, 2020, the Company’s effective income tax rate was 15.9% and -6.1%, respectively, on pre-tax income of $6.8 billion and $2.0 billion, respectively. For the three and nine months ended October 29, 2021, the Company’s effective income tax rate includes tax expense of $1.0 billion related to the divestiture of Boomi during the period. In comparison, for the nine months ended October 30, 2020, the Company’s effective income tax rate includes discrete tax benefits of $746 million related to an audit settlement that was recorded in the second quarter of Fiscal 2021 and tax expenses of $359 million relating to the divestiture of RSA Security during the third quarter of Fiscal 2021. The Company’s effective income tax rates were also impacted by changes in the Company’s jurisdictional mix of income and lower overall taxes on foreign operations. 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 October 29, 2021, the Company was not aware of any matters of non-compliance related to these tax holidays. The Internal Revenue Service is currently examining fiscal years 2015 through 2019. 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 $1.5 billion and $1.4 billion as of October 29, 2021 and January 29, 2021, respectively, and are included in Other non-current liabilities in the Condensed Consolidated Statements of Financial Position. The Company does not anticipate a significant change to the total amount of unrecognized tax benefits within the next twelve months. The Company takes certain non-income tax positions in the jurisdictions in which it operates and has received certain non-income tax assessments from various jurisdictions. The Company believes that a material loss in these matters is not probable and that it is not reasonably possible that a material loss exceeding amounts already accrued has been incurred. The Company believes its positions in these non-income tax litigation matters are supportable and that it ultimately will prevail in the matters. In the normal course of business, the Company’s positions and conclusions related to its non-income taxes could be challenged and assessments may be made. To the extent new information is obtained and the Company’s views on its positions, probable outcomes of assessments, or litigation change, changes in estimates to the Company’s accrued liabilities would be recorded in the period in which such a determination is made. In the resolution process for income tax and non-income tax audits, the Company 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) | 9 Months Ended |
Oct. 29, 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 (201) 150 2 (49) Amounts reclassified from accumulated other comprehensive income (loss) — (34) 3 (31) Total change for the period (201) 116 5 (80) Less: Change in comprehensive income (loss) attributable to non-controlling interests — — — — Balances as of October 29, 2021 $ (351) $ 30 $ (73) $ (394) 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 October 29, 2021 October 30, 2020 Cash Flow Hedges Pensions Total Cash Flow Hedges Pensions Total (in millions) Total reclassifications, net of tax: Net revenue $ 66 $ — $ 66 $ (88) $ — $ (88) Cost of net revenue 8 — 8 4 — 4 Operating expenses — (1) (1) — 1 1 Total reclassifications, net of tax $ 74 $ (1) $ 73 $ (84) $ 1 $ (83) Nine Months Ended October 29, 2021 October 30, 2020 Cash Flow Hedges Pensions Total Cash Flow Hedges Pensions Total (in millions) Total reclassifications, net of tax: Net revenue $ 31 $ — $ 31 $ 17 $ — $ 17 Cost of net revenue 3 — 3 7 — 7 Operating expenses — (3) (3) — (3) (3) Total reclassifications, net of tax $ 34 $ (3) $ 31 $ 24 $ (3) $ 21 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 9 Months Ended |
Oct. 29, 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 $5.1 billion and $5.0 billion as of October 29, 2021 and January 29, 2021, respectively. As of October 29, 2021 and January 29, 2021, the Company held approximately 80.5% and 80.6%, respectively, of the outstanding equity interest in VMware, Inc. On November 1, 2021, subsequent to the close of the third quarter of Fiscal 2022, the Company completed the VMware Spin-off. See Note 1 and Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information regarding the completion of the VMware Spin-off. 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 $105 million and $96 million as of October 29, 2021 and January 29, 2021, respectively. As of October 29, 2021 and January 29, 2021, the Company held approximately 84.0% and 85.7%, respectively, of the outstanding equity interest in Secureworks, excluding restricted stock awards (“RSAs”) and 83.1% 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: Nine Months Ended October 29, 2021 (in millions) Net income attributable to Dell Technologies Inc. $ 5,561 Transfers (to)/from the non-controlling interests: Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity 762 Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity (828) Net transfers to non-controlling interests (66) Change from net income attributable to Dell Technologies Inc. and transfers to the non-controlling interests $ 5,495 |
CAPITALIZATION
CAPITALIZATION | 9 Months Ended |
Oct. 29, 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 October 29, 2021 Class A 600 379 379 Class B 200 95 95 Class C 7,900 301 293 Class D 100 — — Class V 343 — — 9,143 775 767 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 October 29, 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 nine months ended October 29, 2021, the Company issued 5,912,845 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. During the nine months ended October 29, 2021, the Company issued 6,334,990 shares of Class C Common Stock to stockholders upon their conversion of the same number of shares of Class B Common Stock into Class C Common Stock in accordance with the Company’s certificate of incorporation. 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 was 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. During the nine months ended October 30, 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. Effective as of September 23, 2021, the Company’s board of directors terminated the Company’s previous stock repurchase program and approved a new stock repurchase program (the “2021 Stock Repurchase Program”) under which the Company is authorized to use assets to repurchase up to $5 billion of shares of the Company’s Class C Common Stock with no established expiration date. The repurchase of shares commenced in the fourth quarter of Fiscal 2022 and, accordingly, as of October 29, 2021 the cumulative authorized amount remaining for stock repurchases was $5 billion. 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. On October 7, 2021, VMware authorized the termination of the existing stock repurchase program, under which $183 million remained authorized and unpurchased as of October 29, 2021, and authorized a new repurchase program of up to $2.0 billion of Class A common stock through the end of fiscal 2024, in each case, effective upon the close of the VMware Spin-off. During the nine months ended October 29, 2021, VMware, Inc. repurchased 5.7 million shares of its Class A common stock in the open market for approximately $872 million. During the nine months ended October 30, 2020, VMware, Inc. repurchased approximately 4.2 million shares of its Class A common stock in the open market for approximately $566 million. All shares repurchased under VMware, Inc.’s stock repurchase programs are retired. The above VMware, Inc. Class A common stock repurchases for the nine months ended October 29, 2021 and October 30, 2020 exclude shares repurchased to settle employee tax withholding related to the vesting of VMware, Inc. stock awards of $284 million and $315 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Oct. 29, 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, adjusted for incremental dilution from non-controlling interests, 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. 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 Dell Technologies Common Stock for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 Earnings per share attributable to Dell Technologies Inc. Dell Technologies Common Stock — Basic $ 5.02 $ 1.11 $ 7.30 $ 2.73 Dell Technologies Common Stock — Diluted $ 4.87 $ 1.08 $ 7.08 $ 2.64 The following table presents the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Numerator: Dell Technologies Common Stock Net income attributable to Dell Technologies — basic $ 3,843 $ 832 $ 5,561 $ 2,023 Incremental dilution from VMware, Inc. attributable to Dell Technologies (a) (2) (3) (7) (8) Net income attributable to Dell Technologies — diluted $ 3,841 $ 829 $ 5,554 $ 2,015 Denominator: Dell Technologies Common Stock weighted-average shares outstanding Weighted-average shares outstanding — basic 766 747 762 742 Dilutive effect of options, restricted stock units, restricted stock, and other 22 24 23 22 Weighted-average shares outstanding — diluted 788 771 785 764 Weighted-average shares outstanding — antidilutive — — — 1 ____________________ (a) The incremental dilution from VMware, Inc. attributable to Dell Technologies 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 | 9 Months Ended |
Oct. 29, 2021 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE SHARES | NOTE 15 — REDEEMABLE SHARES Through June 27, 2021, awards under the Company’s stock incentive plans included certain rights that allowed 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 required the Company to purchase the stock at its fair market value. Accordingly, these awards and such common stock were subject to reclassification from equity to temporary equity. The put feature expired on June 27, 2021, and as a result there were no issued and outstanding awards that were reclassified as temporary equity as of October 29, 2021. As of the fiscal year ended January 29, 2021, the Company determined 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 was multiplied by the portion of the option for which services had been rendered. Upon exercise of the option, the amount in temporary equity represented 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 were subject to the occurrence of a contingent event, those amounts were reclassified to temporary equity based on a probability assessment performed by the Company on a periodic basis. Contingent events included the achievement of performance-based metrics. The following table presents the amount of redeemable shares classified as temporary equity and summarizes the award type as of the fiscal year ended January 29, 2021: January 29, 2021 (in millions) Redeemable shares classified as temporary equity $ 472 Issued and outstanding unrestricted common shares 2 Outstanding stock options 6 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Oct. 29, 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 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, virtual cloud networking, digital workspaces, modern applications, and intrinsic security, 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. As described in Note 1 and Note 18 of the Notes to the Condensed Consolidated Financial Statements, the Company completed the VMware Spin-off on November 1, 2021, subsequent to the close of the third quarter of Fiscal 2022. Beginning in the fourth quarter of Fiscal 2022, the Company’s Consolidated Statements of Income will be recast to reflect VMware results as discontinued operations. As such, VMware will no longer be identified as a reportable segment. Pursuant to the CFA, Dell Technologies will continue to integrate VMware, Inc.’s products and services with Dell Technologies’ offerings and sell them to end users. The results of those transactions will be reflected within CSG and ISG, based on the nature of the underlying offering sold. Dell Technologies will also continue to act as a distributor, purchasing VMware, Inc.’s standalone products and services for resale to end-user customers. The results of this business will be reflected in Other businesses. The Company's prior period segment results will be recast to reflect the change. 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 its 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Consolidated net revenue: Infrastructure Solutions Group $ 8,428 $ 8,024 $ 24,771 $ 23,800 Client Solutions Group 16,546 12,286 44,114 34,593 VMware 3,178 2,893 9,317 8,556 Reportable segment net revenue 28,152 23,203 78,202 66,949 Other businesses (a) 251 314 829 1,288 Unallocated transactions (b) 2 4 6 4 Impact of purchase accounting (c) (11) (39) (34) (129) Total consolidated net revenue $ 28,394 $ 23,482 $ 79,003 $ 68,112 Consolidated operating income: Infrastructure Solutions Group $ 892 $ 882 $ 2,650 $ 2,587 Client Solutions Group 1,147 1,002 3,232 2,309 VMware 837 837 2,527 2,504 Reportable segment operating income 2,876 2,721 8,409 7,400 Other businesses (a) (9) 3 (17) 105 Unallocated transactions (b) 1 1 1 (1) Impact of purchase accounting (c) (17) (49) (62) (165) Amortization of intangibles (694) (845) (2,114) (2,547) Transaction-related expenses (d) (311) (52) (422) (211) Stock-based compensation expense (e) (472) (436) (1,406) (1,219) Other corporate expenses (f) (25) (214) (293) (395) Total consolidated operating income $ 1,349 $ 1,129 $ 4,096 $ 2,967 ____________________ (a) Secureworks and Virtustream 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. On October 1, 2021, the Company completed the sale of Boomi. Prior to the divestitures, Boomi and 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 divestitures of Boomi and 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, incentive charges related to equity investments, severance, facilities 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Net revenue: Infrastructure Solutions Group: Servers and networking $ 4,533 $ 4,164 $ 13,104 $ 12,118 Storage 3,895 3,860 11,667 11,682 Total ISG net revenue 8,428 8,024 24,771 23,800 Client Solutions Group: Commercial 12,292 8,783 32,668 25,456 Consumer 4,254 3,503 11,446 9,137 Total CSG net revenue 16,546 12,286 44,114 34,593 VMware: Total VMware net revenue 3,178 2,893 9,317 8,556 Total segment net revenue $ 28,152 $ 23,203 $ 78,202 $ 66,949 |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | 9 Months Ended |
Oct. 29, 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: October 29, 2021 January 29, 2021 (in millions) Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 22,406 $ 14,201 Restricted cash - other current assets (a) 889 891 Restricted cash - other non-current assets (a) 74 92 Total cash, cash equivalents, and restricted cash $ 23,369 $ 15,184 Inventories, net: Production materials $ 3,209 $ 1,717 Work-in-process 812 677 Finished goods 1,421 1,008 Total inventories, net $ 5,442 $ 3,402 Property, plant, and equipment, net: Computer equipment $ 7,628 $ 6,506 Land and buildings 4,775 4,745 Machinery and other equipment 4,173 3,933 Total property, plant, and equipment 16,576 15,184 Accumulated depreciation and amortization (9,651) (8,753) Total property, plant, and equipment, net $ 6,925 $ 6,431 Other non-current assets: Deferred and other tax assets $ 6,450 $ 6,230 Operating lease right of use assets 1,953 2,117 Deferred commissions 1,158 1,094 Other 1,895 1,755 Total other non-current assets $ 11,456 $ 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Trade Receivables — Allowance for expected credit losses: Balance at beginning of period $ 98 $ 146 $ 104 $ 94 Adjustment for adoption of accounting standard (a) — — — 27 Allowance charged to provision 12 (4) 25 43 Bad debt write-offs (10) (27) (29) (49) Balance at end of period $ 100 $ 115 $ 100 $ 115 ____________________ (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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Warranty liability: Warranty liability at beginning of period $ 471 $ 479 $ 473 $ 496 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 281 219 724 573 Service obligations honored (248) (206) (693) (577) Warranty liability at end of period $ 504 $ 492 $ 504 $ 492 Current portion $ 377 $ 362 $ 377 $ 362 Non-current portion $ 127 $ 130 $ 127 $ 130 ____________________ (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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Severance liability: Severance liability at beginning of period $ 126 $ 168 $ 138 $ 196 Severance charges to provision 10 226 120 417 Cash paid and other (a) (50) (181) (172) (400) Severance liability at end of period $ 86 $ 213 $ 86 $ 213 ____________________ (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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Severance charges: Cost of net revenue $ 2 $ 46 $ 24 $ 58 Selling, general, and administrative 7 139 90 308 Research and development 1 41 6 51 Total severance charges $ 10 $ 226 $ 120 $ 417 Interest and Other, Net The following table provides information regarding interest and other, net for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Interest and other, net: Investment income, primarily interest $ 11 $ 11 $ 32 $ 47 Gain on investments, net 27 489 352 591 Interest expense (482) (566) (1,475) (1,855) Foreign exchange (33) (31) (146) (130) Gain on disposition of businesses and assets 3,968 338 3,968 458 Other (55) 32 (42) (40) Total interest and other, net $ 3,436 $ 273 $ 2,689 $ (929) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Oct. 29, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Spin-off of VMware, Inc. On November 1, 2021, the Company completed its previously announced spin-off of VMware, Inc. as described in Note 1 of the Notes to the Condensed Consolidated Financial Statements. Dell Technologies effectuated the VMware Spin-off by means of a special stock dividend of 30,678,605 shares of Class A common stock and 307,221,836 shares of Class B common stock of VMware, Inc. to Dell Technologies stockholders of record as of 5:00 p.m., New York City time, on October 29, 2021. Prior to receipt of the VMware, Inc. common stock by the Company’s stockholders, each share of VMware, Inc. Class B common stock automatically converted into one share of VMware, Inc. Class A common stock. As result of these transactions, each holder of record of shares of Dell Technologies common stock as of the distribution record date received approximately 0.440626 of a share of VMware Class A common stock for each share of Dell Technologies common stock held as of such date, based on shares outstanding as of the completion of the VMware Spin-off. Immediately following the payment by VMware, Inc. to its stockholders of a special cash dividend of $11.5 billion, of which Dell Technologies received approximately $9.3 billion, the separation of VMware, Inc. from Dell Technologies occurred, including through the termination or settlement of certain intercompany accounts and intercompany contracts. Repayment of Indebtedness and Termination of the Existing Credit Agreement The Company used the net proceeds from its $9.3 billion pro rata portion of the cash dividend received in connection with the VMware Spin-off, as well as cash on hand, to repay outstanding debt as described below. On November 1, 2021, the Company repaid the remaining $3,134 million and $3,120 million principal amounts related to the 1.84% Term Loan A-6 Facility due March 2024 and the 2.00% Term Loan B-2 Facility due September 2025, respectively, and terminated all obligations and commitments under the Existing Credit Agreement. On November 2, 2021, the Company repaid $1,500 million principal amount of the 5.45% First Lien Notes due June 2023 and the remaining $1,625 million principal amount of the 7.125% Senior Notes due June 2024. Further, in conjunction with the termination of the Existing Credit Agreement, the tangible and intangible assets of the issuers and guarantors that secure obligations under the Senior Secured Credit Facilities were released as collateral and the First Lien Notes became fully unsecured. In connection with the above debt repayments, the Company incurred $181 million of debt breakage fees and recognized $110 million in unamortized debt discounts associated with the early extinguishment of the debt. 2021 Revolving Credit Facility On November 1, 2021, the Company entered into the 2021 Revolving Credit Facility, a senior unsecured revolving credit facility with JPMorgan Chase Bank, N.A., as administrative agent, and each of the lenders and other parties from time to time party thereto. The 2021 Revolving Credit Facility, which matures on November 1, 2026, provides the Company with revolving commitments in an aggregate principal amount of $5.0 billion for general corporate purposes and includes a letter of credit sub-facility of up to $500 million and a swing-line loan sub-facility of up to $500 million. The 2021 Revolving Credit Facility also allows the Company to request incremental commitments on one or more occasions in a minimum amount of $10 million. 2023 First Lien Notes Notice of Prepayment On November 19, 2021, the Company issued a partial redemption notice of $1.25 billion principal amount of the 5.45% First Lien Notes due June 2023 with the repayment expected to occur on December 6, 2021. Common Stock Repurchases Subsequent to October 29, 2021, the Company began repurchases under the 2021 Stock Repurchase Program described in Note 13 of the Notes to the Condensed Consolidated Financial Statements. Through November 30, 2021, the Company repurchased approximately 3.1 million shares of Class C Common Stock for approximately $173 million. Other than the matters identified above, there were no known events occurring after October 29, 2021 and up until the date of issuance of this report that would materially affect the information presented herein. |
OVERVIEW AND BASIS OF PRESENT_2
OVERVIEW AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Oct. 29, 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 October 29, 2021 and January 29, 2021, the results of its operations and corresponding comprehensive income (loss) for the three and nine months ended October 29, 2021 and October 30, 2020, its cash flows for the nine months ended October 29, 2021 and October 30, 2020, and its statements of stockholders’ equity for the three and nine months ended October 29, 2021 and October 30, 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 and comprehensive income (loss), cash flows, and statements of stockholders’ equity for the three and nine months ended October 29, 2021 and October 30, 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 ending January 28, 2022 (“Fiscal 2022”) and fiscal year ended January 29, 2021 (“Fiscal 2021”) 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 Accounting for Contract Assets and Contract Liabilities from Contracts with Customers — In October 2021, the Financial Accounting Standards Board (“FASB”) issued guidance which requires companies to apply Topic 606, Revenue from Contracts with Customers , to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact and timing of adoption of this guidance. Reference Rate Reform — In March 2020, the 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 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 October 29, 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 $361 million and $308 million as of October 29, 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 October 29, 2021 and January 29, 2021, the Company held private strategic investments of $1.3 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) | 9 Months Ended |
Oct. 29, 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 and recorded at fair value on a recurring basis as of the dates indicated: October 29, 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: Money market funds $ 16,757 $ — $ — $ 16,757 $ 8,846 $ — $ — $ 8,846 Equity and other securities 155 — — 155 449 — — 449 Derivative instruments — 195 — 195 — 104 — 104 Total assets $ 16,912 $ 195 $ — $ 17,107 $ 9,295 $ 104 $ — $ 9,399 Liabilities: Derivative instruments $ — $ 100 $ — $ 100 $ — $ 133 $ — $ 133 Total liabilities $ — $ 100 $ — $ 100 $ — $ 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: October 29, 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 $ 22.8 $ 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 VMware Notes $ 10.7 $ 11.1 $ 4.7 $ 5.3 Margin Loan Facility $ — $ — $ 4.0 $ 3.9 |
Investments | The following table presents the carrying value of the Company’s investments as of the dates indicated: October 29, 2021 January 29, 2021 Cost Unrealized Gain Unrealized (Loss) Carrying Value Cost Unrealized Gain Unrealized (Loss) Carrying Value (in millions) Equity and other securities $ 1,236 $ 488 $ (224) $ 1,500 $ 907 $ 677 $ (145) $ 1,439 Fixed income debt securities 333 — (6) 327 176 9 — 185 Total securities $ 1,827 $ 1,624 |
FINANCIAL SERVICES (Tables)
FINANCIAL SERVICES (Tables) | 9 Months Ended |
Oct. 29, 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: October 29, 2021 January 29, 2021 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross (a) $ 705 $ 9,495 $ 10,200 $ 796 $ 9,595 $ 10,391 Allowances for losses (112) (113) (225) (148) (173) (321) Customer receivables, net 593 9,382 9,975 648 9,422 10,070 Residual interest — 265 265 — 424 424 Financing receivables, net $ 593 $ 9,647 $ 10,240 $ 648 $ 9,846 $ 10,494 Short-term $ 593 $ 4,377 $ 4,970 $ 648 $ 4,507 $ 5,155 Long-term $ — $ 5,270 $ 5,270 $ — $ 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 October 29, 2021 October 30, 2020 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 126 $ 161 $ 287 $ 143 $ 180 $ 323 Charge-offs, net of recoveries (9) (20) (29) (13) (6) (19) Provision charged to income statement (5) (28) (33) 12 (9) 3 Balances at end of period $ 112 $ 113 $ 225 $ 142 $ 165 $ 307 Nine Months Ended October 29, 2021 October 30, 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 — — — 40 71 111 Charge-offs, net of recoveries (32) (25) (57) (51) (22) (73) Provision charged to income statement (4) (35) (39) 83 37 120 Balances at end of period $ 112 $ 113 $ 225 $ 142 $ 165 $ 307 |
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: October 29, 2021 January 29, 2021 Current Past Due Past Due Total Current Past Due Past Due Total (in millions) Revolving — DPA $ 485 $ 34 $ 10 $ 529 $ 578 $ 30 $ 13 $ 621 Revolving — DBC 157 16 3 176 157 14 4 175 Fixed-term — Consumer and Commercial 9,063 411 21 9,495 9,192 316 87 9,595 Total customer receivables, gross $ 9,705 $ 461 $ 34 $ 10,200 $ 9,927 $ 360 $ 104 $ 10,391 |
Credit quality indicators | The following tables present customer receivables, gross, including accrued interest, by credit quality indicator segregated by class and year of origination, as of the dates indicated: October 29, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2022 2021 2020 2019 2018 Years Prior Revolving — DPA Revolving — DBC Total (in millions) Higher $ 2,441 $ 2,055 $ 1,108 $ 297 $ 45 $ 5 $ 135 $ 45 $ 6,131 Mid 765 863 426 126 24 1 163 55 2,423 Lower 486 515 267 60 10 1 231 76 1,646 Total $ 3,692 $ 3,433 $ 1,801 $ 483 $ 79 $ 7 $ 529 $ 176 $ 10,200 January 29, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2021 2020 2019 2018 2017 Years Prior Revolving — DPA Revolving — DBC 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Net revenue — products $ 183 $ 184 $ 607 $ 648 Cost of net revenue — products 162 102 467 435 Gross margin — products $ 21 $ 82 $ 140 $ 213 |
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: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 775 Fiscal 2023 2,207 Fiscal 2024 1,445 Fiscal 2025 735 Fiscal 2026 and beyond 335 Total undiscounted cash flows 5,497 Fixed-term loans 4,620 Revolving loans 705 Less: unearned income (622) Total customer receivables, gross $ 10,200 |
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: October 29, 2021 January 29, 2021 (in millions) Equipment under operating lease, gross $ 2,367 $ 1,746 Less: accumulated depreciation (787) (432) Equipment under operating lease, net $ 1,580 $ 1,314 The following table presents operating lease income related to lease payments and depreciation expense for the Company’s operating lease portfolio for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Income related to lease payments $187 $120 $510 $310 Depreciation expense $140 $92 $383 $228 |
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: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 220 Fiscal 2023 702 Fiscal 2024 437 Fiscal 2025 189 Fiscal 2026 and beyond 21 Total $ 1,569 |
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. October 29, 2021 January 29, 2021 (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 2,650 $ 3,311 Fixed-term securitization offerings 3,618 2,961 Other 147 140 Total DFS U.S. debt 6,415 6,412 DFS international debt: Securitization facility 751 786 Other borrowings 809 1,006 Note payable 250 250 Dell Bank Senior Unsecured Eurobonds 1,752 1,212 Total DFS international debt 3,562 3,254 Total DFS debt $ 9,977 $ 9,666 Total short-term DFS debt $ 5,475 $ 4,888 Total long-term DFS debt $ 4,502 $ 4,778 The following table presents the Company’s outstanding debt as of the dates indicated: October 29, 2021 January 29, 2021 (in millions) Secured Debt Senior Secured Credit Facilities: 2.00% Term Loan B-2 Facility due September 2025 (a) $ 3,120 $ 3,143 1.84% Term Loan A-6 Facility due March 2024 (a) 3,134 3,134 First Lien Notes: 5.45% due June 2023 (a) 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 (a) 1,625 1,625 EMC Notes: 3.375% due June 2023 — 1,000 VMware Notes: 2.95% due August 2022 1,500 1,500 0.60% due August 2023 1,000 — 1.00% due August 2024 1,250 — 4.50% due May 2025 750 750 1.40% due August 2026 1,500 — 4.65% due May 2027 500 500 3.90% due August 2027 1,250 1,250 1.80% due August 2028 750 — 4.70% due May 2030 750 750 2.20% due August 2031 1,500 — DFS Debt (Note 3) 9,977 9,666 Other 2.44% Margin Loan Facility due April 2022 — 4,000 Other 400 235 Total debt, principal amount $ 48,458 $ 48,480 October 29, 2021 January 29, 2021 (in millions) Total debt, principal amount $ 48,458 $ 48,480 Unamortized discount, net of unamortized premium (175) (194) Debt issuance costs (304) (302) Total debt, carrying value $ 47,979 $ 47,984 Total short-term debt, carrying value (b) $ 16,280 $ 6,362 Total long-term debt, carrying value $ 31,699 $ 41,622 ____________________ (a) Subsequent to October 29, 2021, the Company used the net proceeds from its $9.3 billion pro rata share of the cash dividend received in connection with the VMware Spin-off, as well as cash on hand, to repay $3.12 billion principal amount of the 2.00% Term Loan B-2 Facility due September 2025, $3.13 billion principal amount of the 1.84% Term Loan A-6 Facility due March 2024, $1.63 billion principal amount of the 7.125% Senior Notes due June 2024, and $1.50 billion principal amount of the 5.45% First Lien Notes due June 2023. (b) Given the probability of the close of the VMware Spin-off and the Company’s intent and ability to repay, the Company classified $9.4 billion principal amount of debt as short-term liabilities on the Condensed Consolidated Statements of Financial Position as of October 29, 2021. |
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: October 29, 2021 January 29, 2021 (in millions) Assets held by consolidated VIEs Other current assets $ 843 $ 838 Financing receivables, net of allowance Short-term $ 3,467 $ 3,534 Long-term $ 3,294 $ 3,314 Property, plant, and equipment, net $ 874 $ 792 Liabilities held by consolidated VIEs Debt, net of unamortized debt issuance costs Short-term $ 4,180 $ 4,208 Long-term $ 2,826 $ 2,841 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Oct. 29, 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Operating lease costs $ 129 $ 129 $ 404 $ 384 Variable costs 35 37 97 113 Total lease costs $ 164 $ 166 $ 501 $ 497 During both the nine months ended October 29, 2021 and October 30, 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 October 29, 2021 January 29, 2021 (in millions, except for term and discount rate) Operating lease right of use assets Other non-current assets $ 1,953 $ 2,117 Current operating lease liabilities Accrued and other current liabilities $ 439 $ 436 Non-current operating lease liabilities Other non-current liabilities 1,657 1,787 Total operating lease liabilities $ 2,096 $ 2,223 Weighted-average remaining lease term (in years) 8.75 8.85 Weighted-average discount rate 3.18 % 3.47 % The following table presents supplemental cash flow information related to leases for the periods indicated: Nine Months Ended October 29, 2021 October 30, 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities — $ 379 $ 384 Right-of-Use assets obtained in exchange for new operating lease liabilities $ 232 $ 763 |
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: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 111 Fiscal 2023 475 Fiscal 2024 374 Fiscal 2025 276 Fiscal 2026 228 Thereafter 995 Total lease payments 2,459 Less: Imputed interest (363) Total $ 2,096 Current operating lease liabilities $ 439 Non-current operating lease liabilities $ 1,657 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Oct. 29, 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. October 29, 2021 January 29, 2021 (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 2,650 $ 3,311 Fixed-term securitization offerings 3,618 2,961 Other 147 140 Total DFS U.S. debt 6,415 6,412 DFS international debt: Securitization facility 751 786 Other borrowings 809 1,006 Note payable 250 250 Dell Bank Senior Unsecured Eurobonds 1,752 1,212 Total DFS international debt 3,562 3,254 Total DFS debt $ 9,977 $ 9,666 Total short-term DFS debt $ 5,475 $ 4,888 Total long-term DFS debt $ 4,502 $ 4,778 The following table presents the Company’s outstanding debt as of the dates indicated: October 29, 2021 January 29, 2021 (in millions) Secured Debt Senior Secured Credit Facilities: 2.00% Term Loan B-2 Facility due September 2025 (a) $ 3,120 $ 3,143 1.84% Term Loan A-6 Facility due March 2024 (a) 3,134 3,134 First Lien Notes: 5.45% due June 2023 (a) 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 (a) 1,625 1,625 EMC Notes: 3.375% due June 2023 — 1,000 VMware Notes: 2.95% due August 2022 1,500 1,500 0.60% due August 2023 1,000 — 1.00% due August 2024 1,250 — 4.50% due May 2025 750 750 1.40% due August 2026 1,500 — 4.65% due May 2027 500 500 3.90% due August 2027 1,250 1,250 1.80% due August 2028 750 — 4.70% due May 2030 750 750 2.20% due August 2031 1,500 — DFS Debt (Note 3) 9,977 9,666 Other 2.44% Margin Loan Facility due April 2022 — 4,000 Other 400 235 Total debt, principal amount $ 48,458 $ 48,480 October 29, 2021 January 29, 2021 (in millions) Total debt, principal amount $ 48,458 $ 48,480 Unamortized discount, net of unamortized premium (175) (194) Debt issuance costs (304) (302) Total debt, carrying value $ 47,979 $ 47,984 Total short-term debt, carrying value (b) $ 16,280 $ 6,362 Total long-term debt, carrying value $ 31,699 $ 41,622 ____________________ (a) Subsequent to October 29, 2021, the Company used the net proceeds from its $9.3 billion pro rata share of the cash dividend received in connection with the VMware Spin-off, as well as cash on hand, to repay $3.12 billion principal amount of the 2.00% Term Loan B-2 Facility due September 2025, $3.13 billion principal amount of the 1.84% Term Loan A-6 Facility due March 2024, $1.63 billion principal amount of the 7.125% Senior Notes due June 2024, and $1.50 billion principal amount of the 5.45% First Lien Notes due June 2023. (b) Given the probability of the close of the VMware Spin-off and the Company’s intent and ability to repay, the Company classified $9.4 billion principal amount of debt as short-term liabilities on the Condensed Consolidated Statements of Financial Position as of October 29, 2021. |
Aggregate future maturities | The following table presents the aggregate future maturities of the Company’s debt as of October 29, 2021 for the periods indicated: Maturities by Fiscal Year (a) 2022 2023 2024 2025 2026 Thereafter Total (in millions) Senior Secured Credit Facilities and First Lien Notes $ 7,754 $ — $ 2,250 $ 1,000 $ 1,000 $ 12,750 $ 24,754 Unsecured Notes and Debentures — — — — — 952 952 Senior Notes and EMC Notes 1,625 — — — — — 1,625 VMware Notes — 1,500 1,000 1,250 750 6,250 10,750 DFS Debt 1,378 5,019 1,888 1,016 86 590 9,977 Other 9 33 187 124 23 24 400 Total maturities, principal amount 10,766 6,552 5,325 3,390 1,859 20,566 48,458 Associated carrying value adjustments (94) (7) (20) (20) (6) (332) (479) Total maturities, carrying value amount $ 10,672 $ 6,545 $ 5,305 $ 3,370 $ 1,853 $ 20,234 $ 47,979 ____________________ (a) Maturities by Fiscal Year reflects $9.4 billion principal amount of debt within the remaining three months of Fiscal 2022 to align to the classification of this debt as short-term on the Condensed Consolidated Statements of Financial Position and reflect the Company’s intent to repay during the fourth quarter of Fiscal 2022. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Oct. 29, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amounts of outstanding derivative instruments | Notional Amounts of Outstanding Derivative Instruments October 29, 2021 January 29, 2021 (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 8,354 $ 6,840 Non-designated as hedging instruments 9,570 9,890 Total $ 17,924 $ 16,730 Interest rate contracts: Non-designated as hedging instruments $ 6,393 $ 5,859 |
Derivative instruments designated as hedging instruments | 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 October 29, 2021 Total net revenue $ 66 Foreign exchange contracts $ 86 Total cost of net revenue 8 Interest rate contracts — Interest and other, net — Total $ 86 $ 74 For the three months ended October 30, 2020 Total net revenue $ (88) Foreign exchange contracts $ 45 Total cost of net revenue 4 Interest rate contracts — Interest and other, net — Total $ 45 $ (84) For the nine months ended October 29, 2021 Total net revenue $ 31 Foreign exchange contracts $ 150 Total cost of net revenue 3 Interest rate contracts — Interest and other, net — Total $ 150 $ 34 For the nine months ended October 30, 2020 Total net revenue $ 17 Foreign exchange contracts $ (45) Total cost of net revenue 7 Interest rate contracts — Interest and other, net — Total $ (45) $ 24 |
Derivative instruments not designated as hedging instruments | Effect of Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 Location of Gain (Loss) Recognized (in millions) Gain (Loss) Recognized: Foreign exchange contracts $ (85) $ (127) $ (242) $ 87 Interest and other, net Interest rate contracts 4 1 1 (43) Interest and other, net Total $ (81) $ (126) $ (241) $ 44 |
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: October 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 $ 112 $ — $ 8 $ — $ 120 Foreign exchange contracts in a liability position (19) — (12) — (31) Net asset (liability) 93 — (4) — 89 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 244 — 25 — 269 Foreign exchange contracts in a liability position (159) — (82) (7) (248) Interest rate contracts in an asset position — 17 — — 17 Interest rate contracts in a liability position — — — (32) (32) Net asset (liability) 85 17 (57) (39) 6 Total derivatives at fair value $ 178 $ 17 $ (61) $ (39) $ 95 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: October 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 $ 406 $ (211) $ 195 $ — $ — $ 195 Financial liabilities (311) 211 (100) — 21 (79) Total derivative instruments $ 95 $ — $ 95 $ — $ 21 $ 116 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: October 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 $ 406 $ (211) $ 195 $ — $ — $ 195 Financial liabilities (311) 211 (100) — 21 (79) Total derivative instruments $ 95 $ — $ 95 $ — $ 21 $ 116 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) | 9 Months Ended |
Oct. 29, 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 Total (in millions) Balance as of January 29, 2021 $ 15,324 $ 4,237 $ 20,802 $ 466 $ 40,829 Goodwill acquired — — (1) — (1) Impact of foreign currency translation (88) — — — (88) Goodwill divested (a) — — — (39) (39) Balance as of October 29, 2021 $ 15,236 $ 4,237 $ 20,801 $ 427 $ 40,701 ____________________ (a) During the three months ended October 29, 2021, Dell Technologies completed its sale of Boomi. Prior to the divestiture, Boomi was included within Other businesses. See Note 1 of the Notes to the Condensed Consolidated Financial Statements for additional information about the divestiture of Boomi. |
Schedule of definite-lived intangible assets | The following table presents the Company’s intangible assets as of the dates indicated: October 29, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 22,387 $ (16,672) $ 5,715 $ 22,394 $ (15,448) $ 6,946 Developed technology 15,479 (12,939) 2,540 15,488 (12,136) 3,352 Trade names 1,286 (977) 309 1,285 (909) 376 Definite-lived intangible assets 39,152 (30,588) 8,564 39,167 (28,493) 10,674 Indefinite-lived trade names 3,755 — 3,755 3,755 — 3,755 Total intangible assets $ 42,907 $ (30,588) $ 12,319 $ 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: October 29, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 22,387 $ (16,672) $ 5,715 $ 22,394 $ (15,448) $ 6,946 Developed technology 15,479 (12,939) 2,540 15,488 (12,136) 3,352 Trade names 1,286 (977) 309 1,285 (909) 376 Definite-lived intangible assets 39,152 (30,588) 8,564 39,167 (28,493) 10,674 Indefinite-lived trade names 3,755 — 3,755 3,755 — 3,755 Total intangible assets $ 42,907 $ (30,588) $ 12,319 $ 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: October 29, 2021 (in millions) Fiscal 2022 (remaining three months) $ 589 Fiscal 2023 1,826 Fiscal 2024 1,458 Fiscal 2025 1,107 Fiscal 2026 858 Thereafter 2,726 Total $ 8,564 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 9 Months Ended |
Oct. 29, 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Deferred revenue: Deferred revenue at beginning of period $ 31,843 $ 28,791 $ 30,801 $ 27,800 Revenue deferrals 5,706 5,432 18,889 17,560 Revenue recognized (6,095) (5,542) (18,092) (16,418) Other (a) — — (144) (261) Deferred revenue at end of period $ 31,454 $ 28,681 $ 31,454 $ 28,681 Short-term deferred revenue $ 16,569 $ 15,259 $ 16,569 $ 15,259 Long-term deferred revenue $ 14,885 $ 13,422 $ 14,885 $ 13,422 ____________________ |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Oct. 29, 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 (201) 150 2 (49) Amounts reclassified from accumulated other comprehensive income (loss) — (34) 3 (31) Total change for the period (201) 116 5 (80) Less: Change in comprehensive income (loss) attributable to non-controlling interests — — — — Balances as of October 29, 2021 $ (351) $ 30 $ (73) $ (394) |
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 October 29, 2021 October 30, 2020 Cash Flow Hedges Pensions Total Cash Flow Hedges Pensions Total (in millions) Total reclassifications, net of tax: Net revenue $ 66 $ — $ 66 $ (88) $ — $ (88) Cost of net revenue 8 — 8 4 — 4 Operating expenses — (1) (1) — 1 1 Total reclassifications, net of tax $ 74 $ (1) $ 73 $ (84) $ 1 $ (83) Nine Months Ended October 29, 2021 October 30, 2020 Cash Flow Hedges Pensions Total Cash Flow Hedges Pensions Total (in millions) Total reclassifications, net of tax: Net revenue $ 31 $ — $ 31 $ 17 $ — $ 17 Cost of net revenue 3 — 3 7 — 7 Operating expenses — (3) (3) — (3) (3) Total reclassifications, net of tax $ 34 $ (3) $ 31 $ 24 $ (3) $ 21 |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 9 Months Ended |
Oct. 29, 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: Nine Months Ended October 29, 2021 (in millions) Net income attributable to Dell Technologies Inc. $ 5,561 Transfers (to)/from the non-controlling interests: Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity 762 Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity (828) Net transfers to non-controlling interests (66) Change from net income attributable to Dell Technologies Inc. and transfers to the non-controlling interests $ 5,495 |
CAPITALIZATION (Tables)
CAPITALIZATION (Tables) | 9 Months Ended |
Oct. 29, 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 October 29, 2021 Class A 600 379 379 Class B 200 95 95 Class C 7,900 301 293 Class D 100 — — Class V 343 — — 9,143 775 767 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) | 9 Months Ended |
Oct. 29, 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 Dell Technologies Common Stock for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 Earnings per share attributable to Dell Technologies Inc. Dell Technologies Common Stock — Basic $ 5.02 $ 1.11 $ 7.30 $ 2.73 Dell Technologies Common Stock — Diluted $ 4.87 $ 1.08 $ 7.08 $ 2.64 The following table presents the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Numerator: Dell Technologies Common Stock Net income attributable to Dell Technologies — basic $ 3,843 $ 832 $ 5,561 $ 2,023 Incremental dilution from VMware, Inc. attributable to Dell Technologies (a) (2) (3) (7) (8) Net income attributable to Dell Technologies — diluted $ 3,841 $ 829 $ 5,554 $ 2,015 Denominator: Dell Technologies Common Stock weighted-average shares outstanding Weighted-average shares outstanding — basic 766 747 762 742 Dilutive effect of options, restricted stock units, restricted stock, and other 22 24 23 22 Weighted-average shares outstanding — diluted 788 771 785 764 Weighted-average shares outstanding — antidilutive — — — 1 ____________________ (a) The incremental dilution from VMware, Inc. attributable to Dell Technologies 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) | 9 Months Ended |
Oct. 29, 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 fiscal year ended January 29, 2021: January 29, 2021 (in millions) Redeemable shares classified as temporary equity $ 472 Issued and outstanding unrestricted common shares 2 Outstanding stock options 6 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Oct. 29, 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Consolidated net revenue: Infrastructure Solutions Group $ 8,428 $ 8,024 $ 24,771 $ 23,800 Client Solutions Group 16,546 12,286 44,114 34,593 VMware 3,178 2,893 9,317 8,556 Reportable segment net revenue 28,152 23,203 78,202 66,949 Other businesses (a) 251 314 829 1,288 Unallocated transactions (b) 2 4 6 4 Impact of purchase accounting (c) (11) (39) (34) (129) Total consolidated net revenue $ 28,394 $ 23,482 $ 79,003 $ 68,112 Consolidated operating income: Infrastructure Solutions Group $ 892 $ 882 $ 2,650 $ 2,587 Client Solutions Group 1,147 1,002 3,232 2,309 VMware 837 837 2,527 2,504 Reportable segment operating income 2,876 2,721 8,409 7,400 Other businesses (a) (9) 3 (17) 105 Unallocated transactions (b) 1 1 1 (1) Impact of purchase accounting (c) (17) (49) (62) (165) Amortization of intangibles (694) (845) (2,114) (2,547) Transaction-related expenses (d) (311) (52) (422) (211) Stock-based compensation expense (e) (472) (436) (1,406) (1,219) Other corporate expenses (f) (25) (214) (293) (395) Total consolidated operating income $ 1,349 $ 1,129 $ 4,096 $ 2,967 ____________________ (a) Secureworks and Virtustream 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. On October 1, 2021, the Company completed the sale of Boomi. Prior to the divestitures, Boomi and 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 divestitures of Boomi and 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Net revenue: Infrastructure Solutions Group: Servers and networking $ 4,533 $ 4,164 $ 13,104 $ 12,118 Storage 3,895 3,860 11,667 11,682 Total ISG net revenue 8,428 8,024 24,771 23,800 Client Solutions Group: Commercial 12,292 8,783 32,668 25,456 Consumer 4,254 3,503 11,446 9,137 Total CSG net revenue 16,546 12,286 44,114 34,593 VMware: Total VMware net revenue 3,178 2,893 9,317 8,556 Total segment net revenue $ 28,152 $ 23,203 $ 78,202 $ 66,949 |
SUPPLEMENTAL CONSOLIDATED FIN_2
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Oct. 29, 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: October 29, 2021 January 29, 2021 (in millions) Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 22,406 $ 14,201 Restricted cash - other current assets (a) 889 891 Restricted cash - other non-current assets (a) 74 92 Total cash, cash equivalents, and restricted cash $ 23,369 $ 15,184 Inventories, net: Production materials $ 3,209 $ 1,717 Work-in-process 812 677 Finished goods 1,421 1,008 Total inventories, net $ 5,442 $ 3,402 Property, plant, and equipment, net: Computer equipment $ 7,628 $ 6,506 Land and buildings 4,775 4,745 Machinery and other equipment 4,173 3,933 Total property, plant, and equipment 16,576 15,184 Accumulated depreciation and amortization (9,651) (8,753) Total property, plant, and equipment, net $ 6,925 $ 6,431 Other non-current assets: Deferred and other tax assets $ 6,450 $ 6,230 Operating lease right of use assets 1,953 2,117 Deferred commissions 1,158 1,094 Other 1,895 1,755 Total other non-current assets $ 11,456 $ 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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Trade Receivables — Allowance for expected credit losses: Balance at beginning of period $ 98 $ 146 $ 104 $ 94 Adjustment for adoption of accounting standard (a) — — — 27 Allowance charged to provision 12 (4) 25 43 Bad debt write-offs (10) (27) (29) (49) Balance at end of period $ 100 $ 115 $ 100 $ 115 ____________________ (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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Warranty liability: Warranty liability at beginning of period $ 471 $ 479 $ 473 $ 496 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 281 219 724 573 Service obligations honored (248) (206) (693) (577) Warranty liability at end of period $ 504 $ 492 $ 504 $ 492 Current portion $ 377 $ 362 $ 377 $ 362 Non-current portion $ 127 $ 130 $ 127 $ 130 ____________________ (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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Severance liability: Severance liability at beginning of period $ 126 $ 168 $ 138 $ 196 Severance charges to provision 10 226 120 417 Cash paid and other (a) (50) (181) (172) (400) Severance liability at end of period $ 86 $ 213 $ 86 $ 213 ____________________ (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 Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Severance charges: Cost of net revenue $ 2 $ 46 $ 24 $ 58 Selling, general, and administrative 7 139 90 308 Research and development 1 41 6 51 Total severance charges $ 10 $ 226 $ 120 $ 417 |
Interest and other, net | The following table provides information regarding interest and other, net for the periods indicated: Three Months Ended Nine Months Ended October 29, 2021 October 30, 2020 October 29, 2021 October 30, 2020 (in millions) Interest and other, net: Investment income, primarily interest $ 11 $ 11 $ 32 $ 47 Gain on investments, net 27 489 352 591 Interest expense (482) (566) (1,475) (1,855) Foreign exchange (33) (31) (146) (130) Gain on disposition of businesses and assets 3,968 338 3,968 458 Other (55) 32 (42) (40) Total interest and other, net $ 3,436 $ 273 $ 2,689 $ (929) |
OVERVIEW AND BASIS OF PRESENT_3
OVERVIEW AND BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Millions | Nov. 01, 2021 | Oct. 01, 2021 | Sep. 01, 2020 | Dec. 28, 2018 | Oct. 29, 2021 |
Subsequent Event | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amount of dividend received | $ 9,300 | ||||
Stock award adjustment ratio, spinoff transaction | 197.00% | ||||
Subsequent Event | Restricted stock units | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stock award adjustment, incremental shares issued for spinoff transaction (in shares) | 30,100,000 | ||||
Subsequent Event | Stock options | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stock award adjustment, incremental shares issued for spinoff transaction (in shares) | 1,900,000 | ||||
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 | ||||
Boomi | Held-for-sale | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Proceeds from divestiture | $ 4,000 | ||||
Gain on sale | 4,000 | ||||
Gain (loss) on sale, net of tax | 3,000 | ||||
Tax expense from sale | $ 1,000 | ||||
RSA Security | Held-for-sale | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Proceeds from divestiture | $ 2,082 | ||||
Gain on sale | 338 | ||||
Gain (loss) on sale, net of tax | (21) | ||||
Tax expense from sale | $ 359 | ||||
Spinoff | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Commercial Framework Agreement (CFA), term | 5 years | ||||
Commercial Framework Agreement (CFA), renewal term | 1 year | ||||
VMware | Subsequent Event | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash dividend | $ 11,500 | ||||
VMware | Spinoff | Subsequent Event | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stock issuance ratio, spinoff transaction | 0.440626 |
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 | Oct. 29, 2021 | Jan. 29, 2021 |
Assets: | ||
Equity and other securities | $ 155 | $ 449 |
Derivative instruments | 195 | 104 |
Total assets | 17,107 | 9,399 |
Liabilities: | ||
Derivative instruments | 100 | 133 |
Total liabilities | 100 | 133 |
Money market funds | ||
Assets: | ||
Money market funds | 16,757 | 8,846 |
Level 1 | ||
Assets: | ||
Equity and other securities | 155 | 449 |
Derivative instruments | 0 | 0 |
Total assets | 16,912 | 9,295 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Money market funds | ||
Assets: | ||
Money market funds | 16,757 | 8,846 |
Level 2 | ||
Assets: | ||
Equity and other securities | 0 | 0 |
Derivative instruments | 195 | 104 |
Total assets | 195 | 104 |
Liabilities: | ||
Derivative instruments | 100 | 133 |
Total liabilities | 100 | 133 |
Level 2 | Money market funds | ||
Assets: | ||
Money market funds | 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: | ||
Money market funds | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS AND I_4
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2021 | Jan. 29, 2021 | |
Fair Value Disclosures [Abstract] | ||
Deferred compensation plan assets | $ 361 | $ 308 |
Deferred compensation liability | 361 | 308 |
Investments without readily determinable fair values | 1,300 | $ 1,000 |
Equity securities, upward price adjustment | 448 | |
Equity securities, upward (downward) price adjustment, net | 411 | |
Equity securities, downward price adjustment | $ 37 |
FAIR VALUE MEASUREMENTS AND I_5
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Carrying Value and Estimated Fair Value of Outstanding Debt (Details) - USD ($) $ in Billions | Oct. 29, 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 | 0 | 1 |
Carrying Value | VMware Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 10.7 | 4.7 |
Carrying Value | Margin Loan Facility | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 0 | 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 | 22.8 | 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 | 0 | 1 |
Fair Value | VMware Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 11.1 | 5.3 |
Fair Value | Margin Loan Facility | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | $ 0 | $ 3.9 |
FAIR VALUE MEASUREMENTS AND I_6
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Investments (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Equity and other securities | ||
Carrying Value | $ 1,300 | $ 1,000 |
Fixed income debt securities | ||
Total securities | 1,827 | 1,624 |
Long-Term Investments | ||
Equity and other securities | ||
Cost | 1,236 | 907 |
Unrealized Gain | 488 | 677 |
Unrealized (Loss) | (224) | (145) |
Carrying Value | 1,500 | 1,439 |
Fixed income debt securities | ||
Fixed income debt securities | ||
Cost | 333 | 176 |
Unrealized Gain | 0 | 9 |
Unrealized (Loss) | (6) | 0 |
Carrying Value | $ 327 | $ 185 |
FINANCIAL SERVICES - Additional
FINANCIAL SERVICES - Additional Information (Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
New financing originations | $ 2 | $ 2.1 | $ 5.8 | $ 6.5 |
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 | Oct. 29, 2021 | Jul. 30, 2021 | Jan. 29, 2021 | Oct. 30, 2020 | Jul. 31, 2020 | Jan. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | $ 10,200 | $ 10,391 | ||||
Financing receivables, net | 10,240 | 10,494 | ||||
Short-term | 4,970 | 5,155 | ||||
Long-term | 5,270 | 5,339 | ||||
Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 10,200 | 10,391 | ||||
Allowances for losses | (225) | $ (287) | (321) | $ (307) | $ (323) | $ (149) |
Financing receivables, net | 9,975 | 10,070 | ||||
Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 265 | 424 | ||||
Revolving | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 593 | 648 | ||||
Short-term | 593 | 648 | ||||
Long-term | 0 | 0 | ||||
Revolving | Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 705 | 796 | ||||
Allowances for losses | (112) | (126) | (148) | (142) | (143) | (70) |
Financing receivables, net | 593 | 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 | 9,647 | 9,846 | ||||
Short-term | 4,377 | 4,507 | ||||
Long-term | 5,270 | 5,339 | ||||
Fixed-term | Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 9,495 | 9,595 | ||||
Allowances for losses | (113) | $ (161) | (173) | $ (165) | $ (180) | $ (79) |
Financing receivables, net | 9,382 | 9,422 | ||||
Fixed-term | Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | $ 265 | $ 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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balances at beginning of period | $ 287 | $ 323 | $ 321 | $ 149 |
Charge-offs, net of recoveries | (29) | (19) | (57) | (73) |
Provision charged to income statement | (33) | 3 | (39) | 120 |
Balances at end of period | 225 | 307 | 225 | 307 |
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 | 126 | 143 | 148 | 70 |
Charge-offs, net of recoveries | (9) | (13) | (32) | (51) |
Provision charged to income statement | (5) | 12 | (4) | 83 |
Balances at end of period | 112 | 142 | 112 | 142 |
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 | 161 | 180 | 173 | 79 |
Charge-offs, net of recoveries | (20) | (6) | (25) | (22) |
Provision charged to income statement | (28) | (9) | (35) | 37 |
Balances at end of period | $ 113 | $ 165 | 113 | 165 |
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 | Oct. 29, 2021 | Jan. 29, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | $ 10,200 | $ 10,391 |
Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 10,200 | 10,391 |
Revolving | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 705 | 796 |
Revolving | Revolving — DPA | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 529 | 621 |
Revolving | Revolving — DBC | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 176 | 175 |
Fixed-term | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,495 | 9,595 |
Fixed-term | Fixed-term — Consumer and Commercial | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,495 | 9,595 |
Current | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,705 | 9,927 |
Current | Revolving | Revolving — DPA | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 485 | 578 |
Current | Revolving | Revolving — DBC | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 157 | 157 |
Current | Fixed-term | Fixed-term — Consumer and Commercial | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,063 | 9,192 |
Past Due 1 — 90 Days | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 461 | 360 |
Past Due 1 — 90 Days | Revolving | Revolving — DPA | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 34 | 30 |
Past Due 1 — 90 Days | Revolving | Revolving — DBC | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 16 | 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 | 411 | 316 |
Past Due >90 Days | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 34 | 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 | $ 21 | $ 87 |
FINANCIAL SERVICES - Credit Qua
FINANCIAL SERVICES - Credit Quality Indicators (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Customer receivables, gross | $ 10,200 | $ 10,391 |
Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 3,692 | 5,111 |
2021 | 3,433 | 2,972 |
2020 | 1,801 | 1,191 |
2019 | 483 | 277 |
2018 | 79 | 44 |
Years Prior | 7 | 0 |
Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 529 | 621 |
Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 176 | 175 |
Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Customer receivables, gross | 6,131 | 5,999 |
Higher | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 2,441 | 3,125 |
2021 | 2,055 | 1,802 |
2020 | 1,108 | 661 |
2019 | 297 | 166 |
2018 | 45 | 26 |
Years Prior | 5 | 0 |
Higher | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 135 | 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 | 2,423 | 2,401 |
Mid | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 765 | 1,121 |
2021 | 863 | 671 |
2020 | 426 | 287 |
2019 | 126 | 73 |
2018 | 24 | 9 |
Years Prior | 1 | 0 |
Mid | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 163 | 188 |
Mid | Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 55 | 52 |
Lower | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Customer receivables, gross | 1,646 | 1,991 |
Lower | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 486 | 865 |
2021 | 515 | 499 |
2020 | 267 | 243 |
2019 | 60 | 38 |
2018 | 10 | 9 |
Years Prior | 1 | 0 |
Lower | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 231 | 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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Receivables [Abstract] | ||||
Interest income on the sales-type lease receivables | $ 59 | $ 69 | $ 186 | $ 200 |
FINANCIAL SERVICES - Finance Le
FINANCIAL SERVICES - Finance Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Receivables [Abstract] | ||||
Net revenue — products | $ 183 | $ 184 | $ 607 | $ 648 |
Cost of net revenue — products | 162 | 102 | 467 | 435 |
Gross margin — products | $ 21 | $ 82 | $ 140 | $ 213 |
FINANCIAL SERVICES - Finance _2
FINANCIAL SERVICES - Finance Leases Future Maturity (Details) $ in Millions | Oct. 29, 2021USD ($) |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Fiscal 2022 (remaining three months) | $ 775 |
Fiscal 2023 | 2,207 |
Fiscal 2024 | 1,445 |
Fiscal 2025 | 735 |
Fiscal 2026 and beyond | 335 |
Total undiscounted cash flows | 5,497 |
Total customer receivables, gross | 10,200 |
Less: unearned income | (622) |
Fixed-term loans | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Total customer receivables, gross | 4,620 |
Revolving loans | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Total customer receivables, gross | $ 705 |
FINANCIAL SERVICES - Operating
FINANCIAL SERVICES - Operating Leases (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment under operating lease, gross | $ 16,576 | $ 15,184 |
Less: accumulated depreciation | (9,651) | (8,753) |
Equipment under operating lease, net | 6,925 | 6,431 |
Operating Lease | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment under operating lease, gross | 2,367 | 1,746 |
Less: accumulated depreciation | (787) | (432) |
Equipment under operating lease, net | $ 1,580 | $ 1,314 |
FINANCIAL SERVICES - Operatin_2
FINANCIAL SERVICES - Operating Leases Payments and Depreciation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Income related to lease payments | $ 187 | $ 120 | $ 510 | $ 310 |
Operating Lease | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Depreciation expense | $ 140 | $ 92 | $ 383 | $ 228 |
FINANCIAL SERVICES - Future Mat
FINANCIAL SERVICES - Future Maturities (Details) $ in Millions | Oct. 29, 2021USD ($) |
Operating Leases | |
Fiscal 2022 (remaining three months) | $ 220 |
Fiscal 2023 | 702 |
Fiscal 2024 | 437 |
Fiscal 2025 | 189 |
Fiscal 2026 and beyond | 21 |
Total | $ 1,569 |
FINANCIAL SERVICES - DFS Debt (
FINANCIAL SERVICES - DFS Debt (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS international debt | $ 47,979 | $ 47,984 |
Total DFS debt | 48,458 | 48,480 |
Short-term debt | 16,280 | 6,362 |
Long-term debt | 31,699 | 41,622 |
Secured Debt | U.S. | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS international debt | 6,415 | 6,412 |
Secured Debt | International | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS international debt | 3,562 | 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 DFS international debt | 2,650 | 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 DFS international debt | 751 | 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 DFS international debt | 3,618 | 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 DFS international debt | 147 | 140 |
Other | Secured Debt | International | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS international debt | 809 | 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 DFS international debt | 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 DFS international debt | 1,752 | 1,212 |
DFS Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS debt | 9,977 | |
DFS Debt | Secured Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS debt | 9,977 | 9,666 |
Short-term debt | 5,475 | 4,888 |
Long-term debt | $ 4,502 | $ 4,778 |
FINANCIAL SERVICES - DFS Debt N
FINANCIAL SERVICES - DFS Debt Narrative (Details) | Oct. 27, 2021EUR (€) | Jun. 24, 2020EUR (€) | Oct. 17, 2019EUR (€) | Oct. 29, 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 | $ 4,500,000,000 | |||||||
Secured Debt | Asset-based financing and securitization facilities | International | Fixed-term | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt capacity | $ 934,000,000 | |||||||
Secured Debt | Fixed-term securitization offerings | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0.18% | |||||||
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 | $ 364,000,000 | |||||||
Secured Debt | Other | Europe | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt capacity | 701,000,000 | |||||||
Secured Debt | Other | Australia and New Zealand | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt capacity | $ 339,000,000 | |||||||
Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 3,300,000,000 | |||||||
Unsecured Debt | Mexico | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of credit agreements | agreement | 2 | |||||||
Unsecured Debt | Dell Bank Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0.50% | 1.625% | 0.625% | |||||
Aggregate principal amount | € | € 500,000,000 | € 500,000,000 | € 500,000,000 | |||||
Debt instrument, term | 5 years | 4 years | 3 years |
FINANCIAL SERVICES - Schedule_3
FINANCIAL SERVICES - Schedule of Financing Receivables Held by the Consolidated VIEs (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 135,677 | $ 123,415 |
Liabilities | 121,483 | 115,390 |
Other current assets | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 843 | 838 |
Short-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 3,467 | 3,534 |
Long-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 3,294 | 3,314 |
Property, plant, and equipment, net | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 874 | 792 |
Short-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities | 4,180 | 4,208 |
Long-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities | $ 2,826 | $ 2,841 |
FINANCIAL SERVICES - Variable I
FINANCIAL SERVICES - Variable Interest Entities Narrative (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Variable Interest Entity, Primary Beneficiary | ||||
Debt Instrument [Line Items] | ||||
Financing receivables transferred via securitization through SPEs | $ 1.4 | $ 1.6 | $ 4.1 | $ 4.6 |
FINANCIAL SERVICES - Customer R
FINANCIAL SERVICES - Customer Receivables Sales Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2021 | Oct. 30, 2020 | |
Receivables [Abstract] | ||
Financing receivables sold | $ 180 | $ 414 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | Oct. 29, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease not yet commenced | $ 64 |
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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Operating lease expense: | ||||
Operating lease costs | $ 129 | $ 129 | $ 404 | $ 384 |
Variable costs | 35 | 37 | 97 | 113 |
Total lease costs | $ 164 | $ 166 | $ 501 | $ 497 |
LEASES - Supplemental Informati
LEASES - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Leases [Abstract] | ||
Operating lease right of use assets | $ 1,953 | $ 2,117 |
Operating lease right of use (“ROU”) assets extensible list | Other non-current assets | Other non-current assets |
Current operating lease liabilities | $ 439 | $ 436 |
Current operating lease liabilities extensible list | Accrued and other | Accrued and other |
Non-current operating lease liabilities | $ 1,657 | $ 1,787 |
Non-current operating lease liabilities extensible list | Other non-current liabilities | Other non-current liabilities |
Total operating lease liabilities | $ 2,096 | $ 2,223 |
Weighted-average remaining lease term (in years) | 8 years 9 months | 8 years 10 months 6 days |
Weighted-average discount rate | 3.18% | 3.47% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2021 | Oct. 30, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases | $ 379 | $ 384 |
Right-of-Use assets obtained in exchange for new operating lease liabilities | $ 232 | $ 763 |
LEASES - Maturity of Operating
LEASES - Maturity of Operating Leases (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Leases [Abstract] | ||
Fiscal 2022 (remaining three months) | $ 111 | |
Fiscal 2023 | 475 | |
Fiscal 2024 | 374 | |
Fiscal 2025 | 276 | |
Fiscal 2026 | 228 | |
Thereafter | 995 | |
Total lease payments | 2,459 | |
Less: Imputed interest | (363) | |
Total operating lease liabilities | 2,096 | $ 2,223 |
Current operating lease liabilities | 439 | 436 |
Non-current operating lease liabilities | $ 1,657 | $ 1,787 |
DEBT - Outstanding Debt (Detail
DEBT - Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 03, 2021 | Nov. 02, 2021 | Nov. 01, 2021 | Oct. 29, 2021 | Oct. 29, 2021 | Oct. 30, 2020 | Jan. 29, 2021 |
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 48,458 | $ 48,458 | $ 48,480 | ||||
Unamortized discount, net of unamortized premium | (175) | (175) | (194) | ||||
Debt issuance costs | (304) | (304) | (302) | ||||
Total debt, carrying value | 47,979 | 47,979 | 47,984 | ||||
Total short-term debt, carrying value | 16,280 | 16,280 | 6,362 | ||||
Total long-term debt, carrying value | 31,699 | 31,699 | 41,622 | ||||
Repayments of debt | 13,069 | $ 17,244 | |||||
Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Amount of dividend received | $ 9,300 | ||||||
VMware | |||||||
Debt Instrument [Line Items] | |||||||
Total short-term debt, carrying value | 9,400 | 9,400 | |||||
DFS Debt | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | 9,977 | 9,977 | |||||
Secured Debt | 2.00% Term Loan B-2 Facility Due September 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 3,120 | $ 3,120 | 3,143 | ||||
Interest rate at period end | 2.00% | 2.00% | |||||
Secured Debt | 2.00% Term Loan B-2 Facility Due September 2025 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 3,120 | ||||||
Secured Debt | Term Loan A-6 Facility Due March 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 3,134 | $ 3,134 | 3,134 | ||||
Interest rate at period end | 1.84% | 1.84% | |||||
Secured Debt | Term Loan A-6 Facility Due March 2024 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | 3,130 | $ 3,134 | |||||
Secured Debt | 5.45% Due June 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 3,750 | $ 3,750 | 3,750 | ||||
Interest rate | 5.45% | 5.45% | |||||
Secured Debt | 5.45% Due June 2023 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | 1,500 | $ 1,500 | |||||
Secured Debt | 4.00% due July 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,000 | $ 1,000 | 1,000 | ||||
Interest rate | 4.00% | 4.00% | |||||
Secured Debt | 5.85% due July 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,000 | $ 1,000 | 1,000 | ||||
Interest rate | 5.85% | 5.85% | |||||
Secured Debt | 6.02% due June 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 4,500 | $ 4,500 | 4,500 | ||||
Interest rate | 6.02% | 6.02% | |||||
Secured Debt | 4.90% due October 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,750 | $ 1,750 | 1,750 | ||||
Interest rate | 4.90% | 4.90% | |||||
Secured Debt | 6.10% due July 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 500 | $ 500 | 500 | ||||
Interest rate | 6.10% | 6.10% | |||||
Secured Debt | 5.30% due October 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,750 | $ 1,750 | 1,750 | ||||
Interest rate | 5.30% | 5.30% | |||||
Secured Debt | 6.20% due July 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 750 | $ 750 | 750 | ||||
Interest rate | 6.20% | 6.20% | |||||
Secured Debt | 8.10% due July 2036 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,500 | $ 1,500 | 1,500 | ||||
Interest rate | 8.10% | 8.10% | |||||
Secured Debt | 8.35% due July 2046 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 2,000 | $ 2,000 | 2,000 | ||||
Interest rate | 8.35% | 8.35% | |||||
Secured Debt | 7.125% Due June 2024 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | 1,630 | ||||||
Secured Debt | DFS Debt | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 9,977 | $ 9,977 | 9,666 | ||||
Total short-term debt, carrying value | 5,475 | 5,475 | 4,888 | ||||
Total long-term debt, carrying value | 4,502 | 4,502 | 4,778 | ||||
Unsecured Debt | 4.625% due April 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 0 | $ 0 | 400 | ||||
Interest rate | 4.625% | 4.625% | |||||
Repayments of debt | $ 400 | ||||||
Unsecured Debt | 7.10% due April 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 300 | $ 300 | 300 | ||||
Interest rate | 7.10% | 7.10% | |||||
Unsecured Debt | 6.50% due April 2038 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 388 | $ 388 | 388 | ||||
Interest rate | 6.50% | 6.50% | |||||
Unsecured Debt | 5.40% due September 2040 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 264 | $ 264 | 264 | ||||
Interest rate | 5.40% | 5.40% | |||||
Unsecured Debt | 5.875% due June 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 0 | $ 0 | 1,075 | ||||
Interest rate | 5.875% | 5.875% | |||||
Repayments of debt | $ 1,100 | ||||||
Unsecured Debt | 7.125% Due June 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,625 | $ 1,625 | 1,625 | ||||
Interest rate | 7.125% | 7.125% | |||||
Unsecured Debt | 7.125% Due June 2024 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 1,630 | $ 1,625 | |||||
Unsecured Debt | 3.375% due June 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 0 | $ 0 | 1,000 | ||||
Repayments of debt | 1,000 | ||||||
Unsecured Debt | 2.95% due August 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,500 | $ 1,500 | 1,500 | ||||
Interest rate | 2.95% | 2.95% | |||||
Unsecured Debt | 0.60% due August 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,000 | $ 1,000 | 0 | ||||
Interest rate | 0.60% | 0.60% | |||||
Unsecured Debt | 1.00% due August 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,250 | $ 1,250 | 0 | ||||
Interest rate | 1.00% | 1.00% | |||||
Unsecured Debt | 4.50% due May 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 750 | $ 750 | 750 | ||||
Interest rate | 4.50% | 4.50% | |||||
Unsecured Debt | 1.40% due August 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,500 | $ 1,500 | 0 | ||||
Interest rate | 1.40% | 1.40% | |||||
Unsecured Debt | 4.65% due May 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 500 | $ 500 | 500 | ||||
Interest rate | 4.65% | 4.65% | |||||
Unsecured Debt | 3.90% due August 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,250 | $ 1,250 | 1,250 | ||||
Interest rate | 3.90% | 3.90% | |||||
Unsecured Debt | 1.80% due August 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 750 | $ 750 | 0 | ||||
Interest rate | 1.80% | 1.80% | |||||
Unsecured Debt | 4.70% due May 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 750 | $ 750 | 750 | ||||
Interest rate | 4.70% | 4.70% | |||||
Unsecured Debt | 2.20% due August 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 1,500 | $ 1,500 | 0 | ||||
Interest rate | 2.20% | 2.20% | |||||
Other | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 400 | $ 400 | 235 | ||||
Other | 2.44% Margin Loan Facility due April 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 0 | $ 0 | $ 4,000 | ||||
Interest rate at period end | 2.44% | 2.44% |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2021 | Oct. 30, 2020 | |
Debt Instrument [Line Items] | ||
Repayments of debt | $ 13,069 | $ 17,244 |
3.375 Due June 2023 Notes | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 1,000 | |
Interest rate | 3.375% | |
Other | 2.44% Margin Loan Facility due April 2022 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 4,000 | |
Unsecured Debt | 5.875% due June 2021 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 1,100 | |
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 ($) $ in Millions | Dec. 03, 2021 | Nov. 01, 2021 | Feb. 18, 2021 | Oct. 29, 2021 | Oct. 30, 2020 | Jun. 30, 2021 | Jan. 29, 2021 | Apr. 09, 2020 | Mar. 20, 2019 | Jun. 01, 2016 |
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 13,069 | $ 17,244 | ||||||||
Total debt, principal amount | 48,458 | $ 48,480 | ||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 4,500 | $ 20,000 | ||||||||
VMware Revolving Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 4,500 | |||||||||
Senior Secured Credit Facilities | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 500 | |||||||||
Senior Secured Credit Facilities | Other | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 400 | |||||||||
Refinancing Term B-2 Loans | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 3,100 | |||||||||
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 | |||||||||
Repayments of debt | $ 4,000 | |||||||||
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% | |||||||||
2.00% Term Loan B-2 Facility due September 2025 (a) | Secured Debt | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 3,120 | $ 3,120 | ||||||||
Notes Due April 9, 2020 | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 2,250 | |||||||||
First Lien Notes | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 18,400 | |||||||||
Total debt, principal amount | $ 100 |
DEBT - Unsecured Debt Narrative
DEBT - Unsecured Debt Narrative (Details) | Dec. 03, 2021USD ($) | Nov. 02, 2021USD ($) | Nov. 01, 2021USD ($) | Sep. 02, 2021USD ($)option_period | Oct. 29, 2021USD ($) | Oct. 29, 2021USD ($) | Oct. 30, 2020USD ($) | Aug. 02, 2021USD ($) | Jan. 29, 2021USD ($) | Apr. 07, 2020USD ($) | Sep. 12, 2017USD ($) | Aug. 21, 2017USD ($) | Jun. 22, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 13,069,000,000 | $ 17,244,000,000 | |||||||||||
Total debt, principal amount | $ 48,458,000,000 | 48,458,000,000 | $ 48,480,000,000 | ||||||||||
VMware Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt, principal amount | 10,750,000,000 | 10,750,000,000 | |||||||||||
Revolving Credit Facility | VMware Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | 4,500,000,000 | 4,500,000,000 | |||||||||||
Unsecured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 3,300,000,000 | ||||||||||||
Unsecured Debt | 3.375% due June 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | 1,000,000,000 | ||||||||||||
Total debt, principal amount | 0 | 0 | 1,000,000,000 | ||||||||||
Unsecured Debt | 7.125% Due June 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt, principal amount | 1,625,000,000 | 1,625,000,000 | $ 1,625,000,000 | ||||||||||
Unsecured Debt | 7.125% Due June 2024 | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 1,630,000,000 | $ 1,625,000,000 | |||||||||||
Unsecured Debt | VMware Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 6,000,000,000 | $ 2,000,000,000 | $ 4,000,000,000 | ||||||||||
Unsecured Debt | VMware Term Loan Facility A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitments term | 3 years | ||||||||||||
Unsecured Debt | VMware Term Loan Facility B | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitments term | 5 years | ||||||||||||
Unsecured Debt | Revolving Credit Facility | VMware Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||
Unsecured Debt | Revolving Credit Facility | 2021 VMware Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||||||||
Debt instrument, term | 5 years | ||||||||||||
Number of extension periods | option_period | 2 | ||||||||||||
Conditional extension period | 1 year | ||||||||||||
Total debt, principal amount | $ 0 | $ 0 | |||||||||||
Unsecured Debt | Revolving Credit Facility | VMware Term Loan Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 4,000,000,000 | ||||||||||||
Unsecured Debt | Revolving Credit Facility | VMware Term Loan Facilities | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from credit facility | $ 4,000,000,000 |
DEBT - Other Narrative (Details
DEBT - Other Narrative (Details) - USD ($) shares in Millions, $ in Millions | Apr. 12, 2017 | Oct. 29, 2021 | Oct. 30, 2020 | Dec. 20, 2018 |
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 13,069 | $ 17,244 | ||
Other | 2.44% Margin Loan Facility due April 2022 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 2,000 | $ 3,400 | ||
Repayments of debt | $ 4,000 | |||
Other | 2.44% Margin Loan Facility due April 2022 | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Other | 2.44% Margin Loan Facility due April 2022 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Class B | Other | 2.44% Margin Loan Facility due April 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, collateral (in shares) | 76 | |||
Class A | Other | 2.44% 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 | Oct. 29, 2021 | Jan. 29, 2021 |
Total maturities, principal amount | ||
2022 (remaining three months) | $ 10,766 | |
2023 | 6,552 | |
2024 | 5,325 | |
2025 | 3,390 | |
2026 | 1,859 | |
Thereafter | 20,566 | |
Total debt, principal amount | 48,458 | $ 48,480 |
Associated carrying value adjustments | ||
2022 (remaining three months) | (94) | |
2023 | (7) | |
2024 | (20) | |
2025 | (20) | |
2026 | (6) | |
Thereafter | (332) | |
Total | (479) | |
Total maturities, carrying value amount | ||
2022 (remaining three months) | 10,672 | |
2023 | 6,545 | |
2024 | 5,305 | |
2025 | 3,370 | |
2026 | 1,853 | |
Thereafter | 20,234 | |
Total debt, carrying value | 47,979 | 47,984 |
Short-term debt | 16,280 | $ 6,362 |
VMware | ||
Total maturities, carrying value amount | ||
Short-term debt | 9,400 | |
Senior Secured Credit Facilities and First Lien Notes | ||
Total maturities, principal amount | ||
2022 (remaining three months) | 7,754 | |
2023 | 0 | |
2024 | 2,250 | |
2025 | 1,000 | |
2026 | 1,000 | |
Thereafter | 12,750 | |
Total debt, principal amount | 24,754 | |
Unsecured Notes and Debentures | ||
Total maturities, principal amount | ||
2022 (remaining three 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 three months) | 1,625 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total debt, principal amount | 1,625 | |
VMware Notes | ||
Total maturities, principal amount | ||
2022 (remaining three months) | 0 | |
2023 | 1,500 | |
2024 | 1,000 | |
2025 | 1,250 | |
2026 | 750 | |
Thereafter | 6,250 | |
Total debt, principal amount | 10,750 | |
DFS Debt | ||
Total maturities, principal amount | ||
2022 (remaining three months) | 1,378 | |
2023 | 5,019 | |
2024 | 1,888 | |
2025 | 1,016 | |
2026 | 86 | |
Thereafter | 590 | |
Total debt, principal amount | 9,977 | |
Other | ||
Total maturities, principal amount | ||
2022 (remaining three months) | 9 | |
2023 | 33 | |
2024 | 187 | |
2025 | 124 | |
2026 | 23 | |
Thereafter | 24 | |
Total debt, principal amount | $ 400 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Narrative) (Details) | 9 Months Ended |
Oct. 29, 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 | 4 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 | Oct. 29, 2021 | Jan. 29, 2021 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 17,924 | $ 16,730 |
Foreign exchange contracts | Designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 8,354 | 6,840 |
Foreign exchange contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 9,570 | 9,890 |
Interest rate contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | $ 6,393 | $ 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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | $ 86 | $ 45 | $ 150 | $ (45) |
Gain (Loss) Reclassified from Accumulated OCI into Income | 74 | (84) | 34 | 24 |
Gain (Loss) Recognized in Income | (81) | (126) | (241) | 44 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | 86 | 45 | 150 | (45) |
Foreign exchange contracts | Total net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | 66 | (88) | 31 | 17 |
Foreign exchange contracts | Total cost of net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | 8 | 4 | 3 | 7 |
Foreign exchange contracts | Interest and other, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | (85) | (127) | (242) | 87 |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest and other, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | 0 | 0 | 0 | 0 |
Gain (Loss) Recognized in Income | $ 4 | $ 1 | $ 1 | $ (43) |
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 | Oct. 29, 2021 | Jan. 29, 2021 |
Derivatives, Fair Value [Line Items] | ||
Asset position | $ 406 | $ 298 |
Liability position | (311) | (327) |
Gross Amounts of Recognized Assets/ (Liabilities) | 95 | (29) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 178 | 94 |
Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 17 | 10 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (61) | (98) |
Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (39) | (35) |
Designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 89 | 21 |
Designated as cash flow hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 93 | 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) | (4) | 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 | 120 | 46 |
Liability position | (31) | (25) |
Designated as cash flow hedging instruments | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 112 | 28 |
Liability position | (19) | (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 | 8 | 18 |
Liability position | (12) | (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) | 6 | (50) |
Non-designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 85 | 76 |
Non-designated as hedging instruments | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 17 | 10 |
Non-designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (57) | (101) |
Non-designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (39) | (35) |
Non-designated as hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 269 | 242 |
Liability position | (248) | (271) |
Non-designated as hedging instruments | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 244 | 184 |
Liability position | (159) | (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 | 25 | 58 |
Liability position | (82) | (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 | 17 | 10 |
Liability position | (32) | (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 | 17 | 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 | $ (32) | $ (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 | Oct. 29, 2021 | Jan. 29, 2021 |
Financial assets | ||
Gross Amounts of Recognized Assets/ (Liabilities) | $ 406 | $ 298 |
Gross Amounts Offset in the Statement of Financial Position | (211) | (194) |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | 195 | 104 |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | 195 | 104 |
Financial liabilities | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (311) | (327) |
Gross Amounts Offset in the Statement of Financial Position | 211 | 194 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | (100) | (133) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 21 | 2 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | (79) | (131) |
Total derivative instruments | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 95 | (29) |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | 95 | (29) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 21 | 2 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | $ 116 | $ (27) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) $ in Millions | 9 Months Ended |
Oct. 29, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 40,829 |
Goodwill acquired | (1) |
Impact of foreign currency translation | (88) |
Goodwill divested | (39) |
Goodwill | 40,701 |
Infrastructure Solutions Group | |
Goodwill [Roll Forward] | |
Goodwill | 15,324 |
Goodwill acquired | 0 |
Impact of foreign currency translation | (88) |
Goodwill divested | 0 |
Goodwill | 15,236 |
Client Solutions Group | |
Goodwill [Roll Forward] | |
Goodwill | 4,237 |
Goodwill acquired | 0 |
Impact of foreign currency translation | 0 |
Goodwill divested | 0 |
Goodwill | 4,237 |
VMware | |
Goodwill [Roll Forward] | |
Goodwill | 20,802 |
Goodwill acquired | (1) |
Impact of foreign currency translation | 0 |
Goodwill divested | 0 |
Goodwill | 20,801 |
Other Businesses | |
Goodwill [Roll Forward] | |
Goodwill | 466 |
Goodwill acquired | 0 |
Impact of foreign currency translation | 0 |
Goodwill divested | (39) |
Goodwill | $ 427 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 29, 2021 | Oct. 30, 2020 | May 01, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | Jan. 29, 2021 | |
Business Acquisition [Line Items] | ||||||
Gross | $ 39,152,000,000 | $ 39,152,000,000 | $ 39,167,000,000 | |||
Accumulated Amortization | (30,588,000,000) | (30,588,000,000) | (28,493,000,000) | |||
Total | 8,564,000,000 | 8,564,000,000 | 10,674,000,000 | |||
Total intangible assets | 42,907,000,000 | 42,907,000,000 | 42,922,000,000 | |||
Intangible assets, net | 12,319,000,000 | 12,319,000,000 | 14,429,000,000 | |||
Amortization expense | 700,000,000 | $ 800,000,000 | 2,100,000,000 | $ 2,500,000,000 | ||
Impairment charges related to intangible assets acquired | 0 | $ 0 | 0 | $ 0 | ||
Gain on sale of assets | $ 120,000,000 | |||||
Trade names | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-lived trade names | 3,755,000,000 | 3,755,000,000 | 3,755,000,000 | |||
Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Gross | 22,387,000,000 | 22,387,000,000 | 22,394,000,000 | |||
Accumulated Amortization | (16,672,000,000) | (16,672,000,000) | (15,448,000,000) | |||
Total | 5,715,000,000 | 5,715,000,000 | 6,946,000,000 | |||
Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Gross | 15,479,000,000 | 15,479,000,000 | 15,488,000,000 | |||
Accumulated Amortization | (12,939,000,000) | (12,939,000,000) | (12,136,000,000) | |||
Total | 2,540,000,000 | 2,540,000,000 | 3,352,000,000 | |||
Trade names | ||||||
Business Acquisition [Line Items] | ||||||
Gross | 1,286,000,000 | 1,286,000,000 | 1,285,000,000 | |||
Accumulated Amortization | (977,000,000) | (977,000,000) | (909,000,000) | |||
Total | $ 309,000,000 | $ 309,000,000 | $ 376,000,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal 2022 (remaining three months) | $ 589 | |
Fiscal 2023 | 1,826 | |
Fiscal 2024 | 1,458 | |
Fiscal 2025 | 1,107 | |
Fiscal 2026 | 858 | |
Thereafter | 2,726 | |
Total | $ 8,564 | $ 10,674 |
DEFERRED REVENUE - Changes in D
DEFERRED REVENUE - Changes in Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | Jan. 29, 2021 | |
Deferred revenue: | |||||
Deferred revenue at beginning of period | $ 31,843 | $ 28,791 | $ 30,801 | $ 27,800 | |
Revenue deferrals | 5,706 | 5,432 | 18,889 | 17,560 | |
Revenue recognized | (6,095) | (5,542) | (18,092) | (16,418) | |
Other | 0 | 0 | (144) | (261) | |
Deferred revenue at end of period | 31,454 | 28,681 | 31,454 | 28,681 | |
Short-term deferred revenue | 16,569 | 15,259 | 16,569 | 15,259 | $ 16,525 |
Long-term deferred revenue | $ 14,885 | $ 13,422 | $ 14,885 | $ 13,422 | $ 14,276 |
DEFERRED REVENUE - Remaining Pe
DEFERRED REVENUE - Remaining Performance Obligation, Expected Timing (Details) $ in Billions | Oct. 29, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 47 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 62.00% |
Deferred revenue recognition period | 12 months |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Oct. 29, 2021USD ($)patent | May 03, 2021patent | Mar. 23, 2020patent | Dec. 30, 2019plaintiff | Oct. 22, 2019patent | Aug. 20, 2019patent | Apr. 25, 2019patenttrademark | Oct. 29, 2021USD ($)plaintiff | Jan. 31, 2020USD ($)patent |
Loss Contingencies [Line Items] | |||||||||
2022 (remaining six month) | $ 5,200 | $ 5,200 | |||||||
2023 | 700 | 700 | |||||||
2024 | $ 800 | $ 800 | |||||||
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 | 4 | 1 | 4 | 2 | 2 | ||||
Trademarks allegedly infringed | trademark | 3 | ||||||||
Amount awarded to other party | $ 237 | ||||||||
Ex parte reexamination | patent | 2 | ||||||||
Inter partes review | patent | 1 | ||||||||
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 | 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 | 9 Months Ended | |||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | Jan. 29, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 18.70% | 37.20% | 15.90% | (6.10%) | |
Pre-tax gains (losses) | $ 4,785 | $ 1,402 | $ 6,785 | $ 2,038 | |
Tax expense from share-based payment arrangement | 1,000 | 1,000 | 359 | ||
Discrete tax benefit from intra-entity asset transfer | $ 746 | ||||
Unrecognized tax benefits | $ 1,500 | $ 1,500 | $ 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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
AOCI [Roll Forward] | ||||
Balance, beginning of period | $ 9,943 | $ 4,558 | $ 7,553 | $ 3,155 |
Other comprehensive income (loss) before reclassifications | (49) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (31) | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $1 and $9, respectively, and $6 and $(3), respectively | (47) | 108 | (80) | 156 |
Less: Change in comprehensive income (loss) attributable to non-controlling interests | 0 | 1 | 0 | 0 |
Balance, end of period | 14,194 | 5,939 | 14,194 | 5,939 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (347) | (660) | (314) | (709) |
Total other comprehensive income (loss), net of tax expense (benefit) of $1 and $9, respectively, and $6 and $(3), respectively | (80) | |||
Balance, end of period | (394) | $ (553) | (394) | $ (553) |
Foreign Currency Translation Adjustments | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (150) | |||
Other comprehensive income (loss) before reclassifications | (201) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $1 and $9, respectively, and $6 and $(3), respectively | (201) | |||
Less: Change in comprehensive income (loss) attributable to non-controlling interests | 0 | |||
Balance, end of period | (351) | (351) | ||
Cash Flow Hedges | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (86) | |||
Other comprehensive income (loss) before reclassifications | 150 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (34) | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $1 and $9, respectively, and $6 and $(3), respectively | 116 | |||
Less: Change in comprehensive income (loss) attributable to non-controlling interests | 0 | |||
Balance, end of period | 30 | 30 | ||
Pension and Other Postretirement Plans | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (78) | |||
Other comprehensive income (loss) before reclassifications | 2 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $1 and $9, respectively, and $6 and $(3), respectively | 5 | |||
Less: Change in comprehensive income (loss) attributable to non-controlling interests | 0 | |||
Balance, end of period | $ (73) | $ (73) |
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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | $ 28,394 | $ 23,482 | $ 79,003 | $ 68,112 |
Cost of net revenue | (20,335) | (16,221) | (55,301) | (46,842) |
Operating expenses | 6,710 | 6,132 | 19,606 | 18,303 |
Total reclassifications, net of tax | 3,888 | 881 | 5,706 | 2,162 |
Total reclassifications, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | 66 | (88) | 31 | 17 |
Cost of net revenue | 8 | 4 | 3 | 7 |
Operating expenses | (1) | 1 | (3) | (3) |
Total reclassifications, net of tax | 73 | (83) | 31 | 21 |
Total reclassifications, net of tax | Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | 66 | (88) | 31 | 17 |
Cost of net revenue | 8 | 4 | 3 | 7 |
Operating expenses | 0 | 0 | 0 | 0 |
Total reclassifications, net of tax | 74 | (84) | 34 | 24 |
Total reclassifications, net of tax | Pension and Other Postretirement Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Cost of net revenue | 0 | 0 | 0 | 0 |
Operating expenses | (1) | 1 | (3) | (3) |
Total reclassifications, net of tax | $ (1) | $ 1 | $ (3) | $ (3) |
NON-CONTROLLING INTERESTS - Add
NON-CONTROLLING INTERESTS - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jul. 30, 2021 | Jan. 29, 2021 | Oct. 30, 2020 | Jul. 31, 2020 | Jan. 31, 2020 |
Noncontrolling Interest [Line Items] | ||||||
Non-controlling interests | $ 14,194 | $ 9,943 | $ 7,553 | $ 5,939 | $ 4,558 | $ 3,155 |
Non-controlling interests | ||||||
Noncontrolling Interest [Line Items] | ||||||
Non-controlling interests | $ 5,240 | $ 5,118 | $ 5,074 | $ 5,056 | $ 4,977 | $ 4,729 |
VMware, Inc. | ||||||
Noncontrolling Interest [Line Items] | ||||||
Outstanding equity interest held | 80.50% | 80.60% | ||||
VMware, Inc. | Non-controlling interests | ||||||
Noncontrolling Interest [Line Items] | ||||||
Non-controlling interests | $ 5,100 | $ 5,000 | ||||
SecureWorks | ||||||
Noncontrolling Interest [Line Items] | ||||||
Outstanding equity interest held | 84.00% | 85.70% | ||||
Outstanding equity interest, including RSAs | 83.10% | 84.90% | ||||
SecureWorks | Non-controlling interests | ||||||
Noncontrolling Interest [Line Items] | ||||||
Non-controlling interests | $ 105 | $ 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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Noncontrolling Interest [Abstract] | ||||
Net income attributable to Dell Technologies Inc. | $ 3,843 | $ 832 | $ 5,561 | $ 2,023 |
Transfers (to)/from the non-controlling interests: | ||||
Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity | 762 | |||
Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity | (828) | |||
Net transfers to non-controlling interests | (66) | |||
Change from net income attributable to Dell Technologies Inc. and transfers to the non-controlling interests | $ 5,495 |
CAPITALIZATION - Schedule of St
CAPITALIZATION - Schedule of Stock by Class (Details) - shares | Oct. 29, 2021 | Jan. 29, 2021 |
Class of Stock [Line Items] | ||
Authorized (in shares) | 9,143,000,000 | 9,143,000,000 |
Issued (in shares) | 775,000,000 | 761,000,000 |
Outstanding shares (in shares) | 767,000,000 | 753,000,000 |
Class A | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 600,000,000 | 600,000,000 |
Issued (in shares) | 379,000,000 | 385,000,000 |
Outstanding shares (in shares) | 379,000,000 | 385,000,000 |
Class B | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 200,000,000 | 200,000,000 |
Issued (in shares) | 95,000,000 | 102,000,000 |
Outstanding shares (in shares) | 95,000,000 | 102,000,000 |
Class C | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 7,900,000,000 | 7,900,000,000 |
Issued (in shares) | 301,000,000 | 274,000,000 |
Outstanding shares (in shares) | 293,000,000 | 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 | Oct. 29, 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) | 9 Months Ended | |
Oct. 29, 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 | |
Class C | Class A Common Stock into Class C Common Stock | ||
Class of Stock [Line Items] | ||
Conversion of stock, shares issued (in shares) | shares | 5,912,845 | |
Class C | Class B Common Stock into Class C Common Stock | ||
Class of Stock [Line Items] | ||
Conversion of stock, shares issued (in shares) | shares | 6,334,990 | |
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, $ in Millions | Feb. 24, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | Oct. 07, 2021 | Sep. 23, 2021 | Jul. 15, 2020 | May 29, 2019 |
Class of Stock [Line Items] | |||||||
Treasury stock repurchases | $ (240) | ||||||
Class C | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchases, authorized amount | $ 1,000 | $ 5,000 | |||||
Stock repurchase program, term | 24 months | ||||||
Shares repurchased (in shares) | 6 | ||||||
Treasury stock repurchases | $ (240) | ||||||
Stock repurchases, remaining authorized amount | $ 5,000 | ||||||
Class A | |||||||
Class of Stock [Line Items] | |||||||
Shares withheld for tax withholding obligation | $ 284 | $ 315 | |||||
Class A | VMware | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchases, authorized amount | $ 1,000 | ||||||
Shares repurchased (in shares) | 5.7 | 4.2 | |||||
Treasury stock repurchases | $ (872) | $ (566) | |||||
Stock repurchases, remaining authorized amount | $ 183 | ||||||
Class A | January 2017 and August 2017 Authorizations | VMware | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchases, authorized amount | $ 1,500 | ||||||
Class A | Repurchase Program Effective upon Close of Spinoff | VMware | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchases, authorized amount | $ 2,000 |
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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Earnings (loss) per share - basic (in dollars per share) | $ 5.02 | $ 1.11 | $ 7.30 | $ 2.73 |
Earnings (loss) per share - diluted (in dollars per share) | $ 4.87 | $ 1.08 | $ 7.08 | $ 2.64 |
Numerator: Continuing operations | ||||
Net income attributable to Dell Technologies — basic | $ 3,843 | $ 832 | $ 5,561 | $ 2,023 |
Incremental dilution from VMware, Inc. attributable to Dell Technologies | (2) | (3) | (7) | (8) |
Net income (loss) - diluted | $ 3,841 | $ 829 | $ 5,554 | $ 2,015 |
Denominator: weighted-average shares outstanding | ||||
Weighted-average shares outstanding - basic (in shares) | 766 | 747 | 762 | 742 |
Dilutive effect of options, restricted stock units, restricted stock, and other (in shares) | 22 | 24 | 23 | 22 |
Weighted-average shares outstanding - diluted (in shares) | 788 | 771 | 785 | 764 |
Weighted-average shares outstanding - antidilutive (in shares) | 0 | 0 | 0 | 1 |
REDEEMABLE SHARES (Details)
REDEEMABLE SHARES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2021 | Jan. 29, 2021 | |
Temporary Equity [Line Items] | ||
Holding period | 6 months | |
Redeemable shares classified as temporary equity | $ 0 | $ 472 |
Redeemable shares outstanding (in shares) | 0 | |
Redeemable shares issued (in shares) | 0 | |
Employee Stock Option | ||
Temporary Equity [Line Items] | ||
Redeemable shares outstanding (in shares) | 6,000,000 | |
Redeemable shares issued (in shares) | 6,000,000 | |
Common Stock | ||
Temporary Equity [Line Items] | ||
Redeemable shares outstanding (in shares) | 2,000,000 | |
Redeemable shares issued (in shares) | 2,000,000 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Narrative) (Details) | 9 Months Ended |
Oct. 29, 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 | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 28,394 | $ 23,482 | $ 79,003 | $ 68,112 |
Consolidated operating income (loss) | 1,349 | 1,129 | 4,096 | 2,967 |
Amortization of intangibles | (700) | (800) | (2,100) | (2,500) |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 28,152 | 23,203 | 78,202 | 66,949 |
Consolidated operating income (loss) | 2,876 | 2,721 | 8,409 | 7,400 |
Operating segments | Infrastructure Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 8,428 | 8,024 | 24,771 | 23,800 |
Consolidated operating income (loss) | 892 | 882 | 2,650 | 2,587 |
Operating segments | Client Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 16,546 | 12,286 | 44,114 | 34,593 |
Consolidated operating income (loss) | 1,147 | 1,002 | 3,232 | 2,309 |
Operating segments | VMware | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 3,178 | 2,893 | 9,317 | 8,556 |
Consolidated operating income (loss) | 837 | 837 | 2,527 | 2,504 |
Operating segments | Other businesses | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 251 | 314 | 829 | 1,288 |
Consolidated operating income (loss) | (9) | 3 | (17) | 105 |
Unallocated transactions | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 2 | 4 | 6 | 4 |
Consolidated operating income (loss) | 1 | 1 | 1 | (1) |
Other corporate expenses | (25) | (214) | (293) | (395) |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | (11) | (39) | (34) | (129) |
Impact of purchase accounting | (17) | (49) | (62) | (165) |
Amortization of intangibles | (694) | (845) | (2,114) | (2,547) |
Transaction-related expenses | (311) | (52) | (422) | (211) |
Stock-based compensation expense | $ (472) | $ (436) | $ (1,406) | $ (1,219) |
SEGMENT INFORMATION - Net reven
SEGMENT INFORMATION - Net revenue and property, plant and equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 28,394 | $ 23,482 | $ 79,003 | $ 68,112 |
Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 28,152 | 23,203 | 78,202 | 66,949 |
Operating segments | Infrastructure Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 8,428 | 8,024 | 24,771 | 23,800 |
Operating segments | Infrastructure Solutions Group | Servers and networking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 4,533 | 4,164 | 13,104 | 12,118 |
Operating segments | Infrastructure Solutions Group | Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 3,895 | 3,860 | 11,667 | 11,682 |
Operating segments | Client Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 16,546 | 12,286 | 44,114 | 34,593 |
Operating segments | Client Solutions Group | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 12,292 | 8,783 | 32,668 | 25,456 |
Operating segments | Client Solutions Group | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 4,254 | 3,503 | 11,446 | 9,137 |
Operating segments | VMware | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 3,178 | $ 2,893 | $ 9,317 | $ 8,556 |
SUPPLEMENTAL CONSOLIDATED FIN_3
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Information on Selected Accounts (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Jan. 29, 2021 |
Cash, cash equivalents, and restricted cash: | ||
Cash and cash equivalents | $ 22,406 | $ 14,201 |
Restricted cash - other current assets | 889 | 891 |
Restricted cash - other non-current assets | 74 | 92 |
Total cash, cash equivalents, and restricted cash | 23,369 | 15,184 |
Inventories, net: | ||
Production materials | 3,209 | 1,717 |
Work-in-process | 812 | 677 |
Finished goods | 1,421 | 1,008 |
Total inventories, net | 5,442 | 3,402 |
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | 16,576 | 15,184 |
Accumulated depreciation and amortization | (9,651) | (8,753) |
Total property, plant, and equipment, net | 6,925 | 6,431 |
Other non-current assets: | ||
Deferred and other tax assets | 6,450 | 6,230 |
Operating lease right of use assets | 1,953 | 2,117 |
Deferred commissions | 1,158 | 1,094 |
Other | 1,895 | 1,755 |
Total other non-current assets | 11,456 | 11,196 |
Computer equipment | ||
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | 7,628 | 6,506 |
Land and buildings | ||
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | 4,775 | 4,745 |
Machinery and other equipment | ||
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | $ 4,173 | $ 3,933 |
SUPPLEMENTAL CONSOLIDATED FIN_4
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Trade Receivables — Allowance for Expected Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 98 | $ 146 | $ 104 | $ 94 |
Allowance charged to provision | 12 | (4) | 25 | 43 |
Bad debt write-offs | (10) | (27) | (29) | (49) |
Balance at end of period | 100 | 115 | 100 | 115 |
Adjustment for adoption of accounting standards | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 0 | $ 0 | $ 0 | $ 27 |
SUPPLEMENTAL CONSOLIDATED FIN_5
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty liability at beginning of period | $ 471 | $ 479 | $ 473 | $ 496 |
Costs accrued for new warranty contracts and changes in estimated for pre-existing warranties | 281 | 219 | 724 | 573 |
Service obligations honored | (248) | (206) | (693) | (577) |
Warranty liability at end of period | 504 | 492 | 504 | 492 |
Current portion | 377 | 362 | 377 | 362 |
Non-current portion | $ 127 | $ 130 | $ 127 | $ 130 |
SUPPLEMENTAL CONSOLIDATED FIN_6
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Severance Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Severance liability at beginning of period | $ 126 | $ 168 | $ 138 | $ 196 |
Severance charges to provision | 10 | 226 | 120 | 417 |
Cash paid and other | (50) | (181) | (172) | (400) |
Severance liability at end of period | $ 86 | $ 213 | $ 86 | $ 213 |
SUPPLEMENTAL CONSOLIDATED FIN_7
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Severance Charges (Details) - Employee Severance - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | $ 10 | $ 226 | $ 120 | $ 417 |
Cost of net revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | 2 | 46 | 24 | 58 |
Selling, general, and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | 7 | 139 | 90 | 308 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | $ 1 | $ 41 | $ 6 | $ 51 |
SUPPLEMENTAL CONSOLIDATED FIN_8
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Interest and Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2021 | Oct. 30, 2020 | Oct. 29, 2021 | Oct. 30, 2020 | |
Interest and other, net: | ||||
Investment income, primarily interest | $ 11 | $ 11 | $ 32 | $ 47 |
Gain on investments, net | 27 | 489 | 352 | 591 |
Interest expense | (482) | (566) | (1,475) | (1,855) |
Foreign exchange | (33) | (31) | (146) | (130) |
Gain on disposition of businesses and assets | 3,968 | 338 | 3,968 | 458 |
Other | (55) | 32 | (42) | (40) |
Interest and other, net | $ 3,436 | $ 273 | $ 2,689 | $ (929) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Dec. 03, 2021USD ($) | Nov. 02, 2021USD ($) | Nov. 02, 2021USD ($) | Nov. 01, 2021USD ($)shares | Oct. 29, 2021USD ($) | Oct. 30, 2020USD ($) | Nov. 30, 2021USD ($)shares | Nov. 19, 2021USD ($) | Sep. 23, 2021USD ($) | Jul. 15, 2020USD ($) | Feb. 24, 2020USD ($) |
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | $ 13,069,000,000 | $ 17,244,000,000 | |||||||||
Class A | VMware | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock repurchases, authorized amount | $ 1,000,000,000 | ||||||||||
Class C | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock repurchases, authorized amount | $ 5,000,000,000 | $ 1,000,000,000 | |||||||||
Term Loan A-6 Facility Due March 2024 | Secured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Interest rate at period end | 1.84% | ||||||||||
5.45% Due June 2023 | Secured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Interest rate | 5.45% | ||||||||||
7.125% Due June 2024 | Unsecured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Interest rate | 7.125% | ||||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Amount of dividend received | $ 9,300,000,000 | ||||||||||
Debt breakage fees | $ 181,000,000 | ||||||||||
Writeoff of unamortized debt discount | $ 110,000,000 | ||||||||||
Subsequent Event | VMware | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Cash dividend | $ 11,500,000,000 | ||||||||||
Subsequent Event | VMware | Spinoff | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock issuance ratio, spinoff transaction | 0.440626 | ||||||||||
Subsequent Event | Class A | VMware | Spinoff | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Special dividends (in shares) | shares | 30,678,605 | ||||||||||
Subsequent Event | Class B | VMware | Spinoff | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Special dividends (in shares) | shares | 307,221,836 | ||||||||||
Subsequent Event | Class C | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repurchased shares (in shares) | shares | 3,100,000 | ||||||||||
Stock repurchases, authorized amount | $ 173,000,000 | ||||||||||
Subsequent Event | 2021 Revolving Credit Facility | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Maximum borrowing capacity | $ 5,000,000,000 | ||||||||||
Subsequent Event | 2021 Revolving Credit Facility, Letter Of Credit Sub Facility | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Maximum borrowing capacity | 500,000,000 | ||||||||||
Subsequent Event | 2021 Revolving Credit Facility, Swing-Line Sub Facility | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Maximum borrowing capacity | 500,000,000 | ||||||||||
Subsequent Event | 2021 Revolving Credit Facility, Incremental Commitments | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Maximum borrowing capacity | 10,000,000 | ||||||||||
Subsequent Event | Term Loan A-6 Facility Due March 2024 | Secured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | $ 3,130,000,000 | 3,134,000,000 | |||||||||
Subsequent Event | 2.00% Term Loan B-2 Facility due September 2025 (a) | Secured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | 3,120,000,000 | $ 3,120,000,000 | |||||||||
Subsequent Event | 5.45% Due June 2023 | Secured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | 1,500,000,000 | $ 1,500,000,000 | |||||||||
Debt instrument, amount to be redeemed | $ 1,250,000,000 | ||||||||||
Subsequent Event | 7.125% Due June 2024 | Secured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | 1,630,000,000 | ||||||||||
Subsequent Event | 7.125% Due June 2024 | Unsecured Debt | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of debt | $ 1,630,000,000 | $ 1,625,000,000 |