Cover
Cover - shares | 6 Months Ended | |
Aug. 04, 2023 | Sep. 06, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 04, 2023 | |
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 of $0.01 per share | |
Trading Symbol | DELL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001571996 | |
Current Fiscal Year End Date | --02-02 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Class C | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 254,312,441 | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 378,480,523 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 90,633,679 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 8,364 | $ 8,607 |
Short-term financing receivables, net of allowance of $72 and $142 (Note 4) | 4,807 | 5,281 |
Inventories | 3,584 | 4,776 |
Other current assets | 11,047 | 10,827 |
Current assets held for sale | 442 | 0 |
Total current assets | 38,999 | 42,351 |
Property, plant, and equipment, net | 6,252 | 6,209 |
Long-term investments | 1,331 | 1,518 |
Long-term financing receivables, net of allowance of $77 and $59 (Note 4) | 5,813 | 5,638 |
Goodwill | 19,640 | 19,676 |
Intangible assets, net | 6,060 | 6,468 |
Due from related party, net | 236 | 440 |
Other non-current assets | 7,327 | 7,311 |
Total assets | 85,658 | 89,611 |
Current liabilities: | ||
Short-term debt | 6,961 | 6,573 |
Accrued and other | 6,586 | 8,874 |
Short-term deferred revenue | 16,174 | 15,542 |
Total current liabilities | 50,942 | 51,654 |
Long-term debt | 20,177 | 23,015 |
Long-term deferred revenue | 14,138 | 14,744 |
Other non-current liabilities | 3,078 | 3,223 |
Total liabilities | 88,335 | 92,636 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity (deficit): | ||
Common stock and capital in excess of $0.01 par value (Note 13) | 8,554 | 8,424 |
Treasury stock at cost | (4,320) | (3,813) |
Accumulated deficit | (6,249) | (6,732) |
Accumulated other comprehensive loss | (757) | (1,001) |
Total Dell Technologies Inc. stockholders’ equity (deficit) | (2,772) | (3,122) |
Non-controlling interests | 95 | 97 |
Total stockholders’ equity (deficit) | (2,677) | (3,025) |
Total liabilities and stockholders’ equity | 85,658 | 89,611 |
Nonrelated Party | ||
Current assets: | ||
Accounts receivable, net of allowance & Due from related party, net | 10,351 | 12,482 |
Current liabilities: | ||
Accounts payable & Due to related party | 19,969 | 18,598 |
Related Party | ||
Current assets: | ||
Accounts receivable, net of allowance & Due from related party, net | 404 | 378 |
Due from related party, net | 236 | 440 |
Current liabilities: | ||
Accounts payable & Due to related party | $ 1,252 | $ 2,067 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss | $ 80 | $ 78 |
Short-term financing receivables, allowance | 72 | 142 |
Long-term financing receivables, allowance | $ 77 | $ 59 |
Common stock, par or value (in dollars per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | ||
Net revenue: | |||||
Total net revenue | $ 22,934 | $ 26,425 | $ 43,856 | $ 52,541 | |
Cost of net revenue : | |||||
Total cost of net revenue | [1] | 17,547 | 20,986 | 33,451 | 41,318 |
Gross margin | 5,387 | 5,439 | 10,405 | 11,223 | |
Operating expenses: | |||||
Selling, general, and administrative | 3,517 | 3,543 | 6,778 | 7,096 | |
Research and development | 705 | 626 | 1,393 | 1,307 | |
Total operating expenses | 4,222 | 4,169 | 8,171 | 8,403 | |
Operating income | 1,165 | 1,270 | 2,234 | 2,820 | |
Interest and other, net | (451) | (635) | (815) | (972) | |
Income before income taxes | 714 | 635 | 1,419 | 1,848 | |
Income tax expense | 259 | 129 | 386 | 273 | |
Net income | 455 | 506 | 1,033 | 1,575 | |
Less: Net loss attributable to non-controlling interests | (7) | (5) | (12) | (8) | |
Net income attributable to Dell Technologies Inc. | $ 462 | $ 511 | $ 1,045 | $ 1,583 | |
Earnings per share attributable to Dell Technologies Inc. | |||||
Basic (in dollars per share) | $ 0.64 | $ 0.69 | $ 1.44 | $ 2.12 | |
Diluted (in dollars per share) | $ 0.63 | $ 0.68 | $ 1.42 | $ 2.06 | |
Products | |||||
Net revenue: | |||||
Total net revenue | $ 16,935 | $ 20,810 | $ 31,971 | $ 41,274 | |
Cost of net revenue : | |||||
Total cost of net revenue | [1] | 14,002 | 17,671 | 26,377 | 34,680 |
Services | |||||
Net revenue: | |||||
Total net revenue | 5,999 | 5,615 | 11,885 | 11,267 | |
Cost of net revenue : | |||||
Total cost of net revenue | [1] | $ 3,545 | $ 3,315 | $ 7,074 | $ 6,638 |
[1] (a) Includes related party cost of net revenue as follows (Note 15): Products 384 426 $ 591 $ 681 Services 880 762 $ 1,756 $ 1,471 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - Related Party - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Products | ||||
Related party cost of net revenue | $ 384 | $ 426 | $ 591 | $ 681 |
Services | ||||
Related party cost of net revenue | $ 880 | $ 762 | $ 1,756 | $ 1,471 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 455 | $ 506 | $ 1,033 | $ 1,575 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (6) | (138) | 25 | (424) |
Cash flow hedges: | ||||
Change in unrealized gains | 49 | 166 | 59 | 538 |
Reclassification adjustment for net (gains) losses included in net income | 68 | (306) | 159 | (402) |
Net change in cash flow hedges | 117 | (140) | 218 | 136 |
Pension and other postretirement plans: | ||||
Recognition of actuarial net gains (losses) from pension and other postretirement plans | 0 | (4) | 1 | 13 |
Net change in actuarial net gains from pension and other postretirement plans | 0 | (4) | 1 | 13 |
Total other comprehensive income (loss), net of tax expense (benefit) of $7 and $(8), respectively, and $12 and $8, respectively | 111 | (282) | 244 | (275) |
Comprehensive income, net of tax | 566 | 224 | 1,277 | 1,300 |
Less: Net loss attributable to non-controlling interests | (7) | (5) | (12) | (8) |
Less: Other comprehensive loss attributable to non-controlling interests | 0 | (1) | 0 | (1) |
Comprehensive income attributable to Dell Technologies Inc. | $ 573 | $ 230 | $ 1,289 | $ 1,309 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) | $ 7 | $ (8) | $ 12 | $ 8 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2023 | Jul. 29, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 1,033 | $ 1,575 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,640 | 1,470 |
Stock-based compensation expense | 448 | 468 |
Deferred income taxes | (194) | (382) |
Other, net | 480 | 449 |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | 1,982 | (926) |
Financing receivables | (130) | 78 |
Inventories | 1,050 | (113) |
Other assets and liabilities | (2,248) | (1,710) |
Due from/to related party, net | (610) | (84) |
Accounts payable | 1,427 | (1,700) |
Deferred revenue | 113 | 1,330 |
Change in cash from operating activities | 4,991 | 455 |
Cash flows from investing activities: | ||
Purchases of investments | (113) | (80) |
Maturities and sales of investments | 127 | 68 |
Capital expenditures and capitalized software development costs | (1,325) | (1,497) |
Other | 22 | 11 |
Change in cash from investing activities | (1,289) | (1,498) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock | 4 | 5 |
Repurchases of common stock | (500) | (2,118) |
Repurchases of common stock for employee tax withholdings | (312) | (358) |
Payments of dividends and dividend equivalents | (545) | (490) |
Proceeds from debt | 4,655 | 6,465 |
Repayments of debt | (7,082) | (6,242) |
Debt-related costs and other, net | (49) | (14) |
Change in cash from financing activities | (3,829) | (2,752) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (117) | (194) |
Change in cash, cash equivalents, and restricted cash | (244) | (3,989) |
Cash, cash equivalents, and restricted cash at beginning of the period | 8,894 | 10,082 |
Cash, cash equivalents, and restricted cash at the end of the period | $ 8,650 | $ 6,093 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Dell Technologies Stockholders’ Equity (Deficit) | Common Stock and Capital in Excess of Par Value | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) | Non-Controlling Interests |
Balance, beginning of period (in shares) at Jan. 28, 2022 | 777 | ||||||
Balance, beginning of period at Jan. 28, 2022 | $ (1,580) | $ (1,685) | $ 7,898 | $ (964) | $ (8,188) | $ (431) | $ 105 |
Balance, beginning of period (in shares) at Jan. 28, 2022 | 20 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 1,575 | 1,583 | 1,583 | (8) | |||
Dividends and dividend equivalents declared | (501) | (501) | (501) | ||||
Foreign currency translation adjustments | (424) | (423) | (423) | (1) | |||
Cash flow hedges, net change | 136 | 136 | 136 | ||||
Pension and other post-retirement | 13 | 13 | 13 | ||||
Issuance of common stock, net of shares repurchased for employee tax withholding (in shares) | 19 | ||||||
Issuance of common stock, net of shares repurchased for employee tax withholding | (344) | (344) | $ (344) | ||||
Stock-based compensation expense | 468 | 451 | $ 451 | 17 | |||
Repurchases of common stock (in shares) | 42 | ||||||
Repurchases of common stock | (2,090) | (2,090) | $ (2,090) | ||||
Impact from equity transactions of non-controlling interests | (8) | (8) | |||||
Balance, end of period (in shares) at Jul. 29, 2022 | 796 | ||||||
Balance, end of period at Jul. 29, 2022 | (2,755) | (2,860) | $ 8,005 | $ (3,054) | (7,106) | (705) | 105 |
Balance, end of period (in shares) at Jul. 29, 2022 | 62 | ||||||
Balance, beginning of period (in shares) at Apr. 29, 2022 | 795 | ||||||
Balance, beginning of period at Apr. 29, 2022 | (2,355) | (2,462) | $ 7,777 | $ (2,446) | (7,369) | (424) | 107 |
Balance, beginning of period (in shares) at Apr. 29, 2022 | 48 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 506 | 511 | 511 | (5) | |||
Dividends and dividend equivalents declared | (248) | (248) | (248) | ||||
Foreign currency translation adjustments | (138) | (137) | (137) | (1) | |||
Cash flow hedges, net change | (140) | (140) | (140) | ||||
Pension and other post-retirement | (4) | (4) | (4) | ||||
Issuance of common stock, net of shares repurchased for employee tax withholding (in shares) | 1 | ||||||
Issuance of common stock, net of shares repurchased for employee tax withholding | (5) | (5) | $ (5) | ||||
Stock-based compensation expense | 236 | 227 | 227 | 9 | |||
Repurchases of common stock (in shares) | 14 | ||||||
Repurchases of common stock | (608) | (608) | $ (608) | ||||
Impact from equity transactions of non-controlling interests | 1 | 6 | $ 6 | (5) | |||
Balance, end of period (in shares) at Jul. 29, 2022 | 796 | ||||||
Balance, end of period at Jul. 29, 2022 | $ (2,755) | (2,860) | $ 8,005 | $ (3,054) | (7,106) | (705) | 105 |
Balance, end of period (in shares) at Jul. 29, 2022 | 62 | ||||||
Balance, beginning of period (in shares) at Feb. 03, 2023 | 798 | 798 | |||||
Balance, beginning of period at Feb. 03, 2023 | $ (3,025) | (3,122) | $ 8,424 | $ (3,813) | (6,732) | (1,001) | 97 |
Balance, beginning of period (in shares) at Feb. 03, 2023 | 82 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 1,033 | 1,045 | 1,045 | (12) | |||
Dividends and dividend equivalents declared | (562) | (562) | (562) | ||||
Foreign currency translation adjustments | 25 | 25 | 25 | ||||
Cash flow hedges, net change | 218 | 218 | 218 | ||||
Pension and other post-retirement | 1 | 1 | 1 | ||||
Issuance of common stock, net of shares repurchased for employee tax withholding (in shares) | 19 | ||||||
Issuance of common stock, net of shares repurchased for employee tax withholding | (303) | (303) | $ (303) | ||||
Stock-based compensation expense | 448 | 433 | $ 433 | 15 | |||
Repurchases of common stock (in shares) | 11 | ||||||
Repurchases of common stock | (507) | (507) | $ (507) | ||||
Impact from equity transactions of non-controlling interests | $ (5) | (5) | |||||
Balance, end of period (in shares) at Aug. 04, 2023 | 817 | 817 | |||||
Balance, end of period at Aug. 04, 2023 | $ (2,677) | (2,772) | $ 8,554 | $ (4,320) | (6,249) | (757) | 95 |
Balance, end of period (in shares) at Aug. 04, 2023 | 93 | ||||||
Balance, beginning of period (in shares) at May. 05, 2023 | 817 | ||||||
Balance, beginning of period at May. 05, 2023 | (2,924) | (3,023) | $ 8,339 | $ (4,064) | (6,430) | (868) | 99 |
Balance, beginning of period (in shares) at May. 05, 2023 | 88 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 455 | 462 | 462 | (7) | |||
Dividends and dividend equivalents declared | (281) | (281) | (281) | ||||
Foreign currency translation adjustments | (6) | (6) | (6) | ||||
Cash flow hedges, net change | 117 | 117 | 117 | ||||
Pension and other post-retirement | 0 | ||||||
Issuance of common stock, net of shares repurchased for employee tax withholding | (4) | (4) | (4) | ||||
Stock-based compensation expense | 223 | 215 | 215 | 8 | |||
Repurchases of common stock (in shares) | 5 | ||||||
Repurchases of common stock | (256) | (256) | $ (256) | ||||
Impact from equity transactions of non-controlling interests | $ (1) | 4 | $ 4 | (5) | |||
Balance, end of period (in shares) at Aug. 04, 2023 | 817 | 817 | |||||
Balance, end of period at Aug. 04, 2023 | $ (2,677) | $ (2,772) | $ 8,554 | $ (4,320) | $ (6,249) | $ (757) | $ 95 |
Balance, end of period (in shares) at Aug. 04, 2023 | 93 |
CONDENSED CONSOLIDATED STATEM_9
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||||
Jun. 16, 2023 | Mar. 02, 2023 | Jun. 07, 2022 | Feb. 24, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividend declared (in dollars per share) | $ 0.37 | $ 0.37 | $ 0.33 | $ 0.33 | $ 0.37 | $ 0.33 | $ 0.74 | $ 0.66 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 6 Months Ended |
Aug. 04, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | OVERVIEW AND BASIS OF PRESENTATION Dell Technologies is a leading global end-to-end technology provider that designs, develops, manufactures, markets, sells, and supports a wide range of comprehensive and integrated solutions, products, and services. Dell Technologies offerings include servers and networking, storage, cloud solutions, desktops, notebooks, services, software, and third-party software and peripherals. 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 February 3, 2023. 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 the Company as of August 4, 2023 and February 3, 2023, the results of its operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and for the six months ended August 4, 2023 and July 29, 2022, and its cash flows for the six months ended August 4, 2023 and July 29, 2022. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of the Company’s operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and six months ended August 4, 2023 and July 29, 2022, and its cash flows for the six months ended August 4, 2023 and July 29, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period. The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended February 3, 2023 (“Fiscal 2023”) was a 53-week period while the fiscal year ending February 2, 2024 (“Fiscal 2024”) will be a 52-week period. Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies Inc. and its wholly-owned subsidiaries, and the accounts of SecureWorks Corp. (“Secureworks”), which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated. Secureworks — As of August 4, 2023 and February 3, 2023, the Company held approximately 81.2% and 82.6% , respectively, of the outstanding equity interest in Secureworks. The portion of the results of operations of Secureworks allocable to its other owners is shown as net loss attributable to the non-controlling interests in the Condensed Consolidated Statements of Income, as an adjustment to net income attributable to Dell Technologies stockholders. 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 wa s $95 million and $97 million as of August 4, 2023 and February 3, 2023, respectively. Variable Interest Entities — The Company 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 4 of the Notes to the Condensed Consolidated Financial Statements for more information regarding consolidated VIEs. Other Events — On July 12, 2023, the Company entered into a definitive agreement with Comenity Capital Bank, a subsidiary of Bread Financial Holdings, Inc. (“Bread”) to establish a new U.S. Dell Preferred Account program under which transactions will be originated, owned, serviced, and collected by Bread. Under the definitive agreement, the Company will also sell its U.S. consumer revolving customer receivables portfolio. Upon the completion of the sale, such receivables will be serviced by Bread and the Company will have no continuing involvement. The transaction is expected to close in the third quarter of Fiscal 2024, subject to customary closing conditions. In accordance with applicable accounting guidance, the Company concluded that the U.S. consumer revolving customer financing receivables have met the criteria to be classified as held for sale as of August 4, 2023. Accordingly, the Company reclassified $389 million, net of allowance, to current assets held for sale on the Condensed Consolidated Statements of Financial Position as of August 4, 2023. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Aug. 04, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated: August 4, 2023 February 3, 2023 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 $ 4,568 $ — $ — $ 4,568 $ 4,301 $ — $ — $ 4,301 Marketable equity and other securities 5 — — 5 33 — — 33 Derivative instruments — 185 — 185 — 295 — 295 Total assets $ 4,573 $ 185 $ — $ 4,758 $ 4,334 $ 295 $ — $ 4,629 Liabilities: Derivative instruments $ — $ 76 $ — $ 76 $ — $ 460 $ — $ 460 Total liabilities $ — $ 76 $ — $ 76 $ — $ 460 $ — $ 460 The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value. Money Market Funds — The Company’s investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices in active markets for identical assets, when available, or pricing models whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The Company reviews security pricing and assesses money market fund liquidity on a quarterly basis. As of August 4, 2023, the Company’s portfolio had no material exposure to money market funds with a fluctuating net asset value. Marketable Equity and Other Securities — 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 7 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 a portion of their compensation. Assets were the same as liabilities associated with the plans at approximately $197 million and $179 million as of August 4, 2023 and February 3, 2023, 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 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets. As of August 4, 2023 and February 3, 2023, the Company held strategic investments in non-marketable equity and other securities of $1.2 billion and $1.3 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. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s strategic investments. 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 6 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated: August 4, 2023 February 3, 2023 Carrying Value Fair Value Carrying Value Fair Value (in billions) Senior Notes $ 16.0 $ 15.8 $ 18.1 $ 18.2 Legacy Notes and Debentures $ 0.9 $ 1.0 $ 0.9 $ 1.0 DFS Debt $ 10.0 $ 9.6 $ 10.3 $ 9.9 The fair values of the outstanding debt shown in the table above 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. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Aug. 04, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The Company has strategic investments in equity and other securities as well as investments in fixed income debt securities. All equity and other securities as well as long-term fixed income debt securities are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. Short-term fixed income debt securities are recorded as other current assets in the Condensed Consolidated Statements of Financial Position. As of both August 4, 2023 and February 3, 2023, total investments were $1.6 billion. Equity and Other Securities Equity and other securities include strategic investments in marketable and non-marketable securities. Investments in marketable securities are measured at fair value on a recurring basis. The Company has elected to apply the measurement alternative for non-marketable securities. Under the alternative, the Company measures investments without readily determinable fair values at cost, less impairment, adjusted by observable price changes. The Company makes 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 of Equity and Other Securities The following table presents the cost, cumulative unrealized gains, cumulative unrealized losses, and carrying value of the Company's strategic investments in marketable and non-marketable equity securities as of the dates indicated: August 4, 2023 February 3, 2023 Cost Unrealized Gain Unrealized Loss Carrying Value Cost Unrealized Gain Unrealized Loss Carrying Value (in millions) Marketable $ 12 $ 19 $ (26) $ 5 $ 56 $ 17 $ (40) $ 33 Non-marketable 729 660 (146) 1,243 714 651 (100) 1,265 Total equity and other securities $ 741 $ 679 $ (172) $ 1,248 $ 770 $ 668 $ (140) $ 1,298 Gains and Losses on Equity and Other Securities The following table presents unrealized gains and losses on marketable and non-marketable equity and other securities for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Marketable securities: Unrealized gain $ 1 $ 7 $ 1 $ 7 Unrealized loss — (1) (23) (19) Net unrealized gain (loss) 1 6 (22) (12) Non-marketable securities: Unrealized gain — 51 9 72 Unrealized loss (41) (320) (46) (320) Net unrealized loss (a) (41) (269) (37) (248) Net unrealized loss on equity and other securities $ (40) $ (263) $ (59) $ (260) ____________________ (a) For all periods presented, net unrealized losses on non-marketable securities were primarily attributable to impairments. During the three and six months ended July 29, 2022, the Company recognized $310 million of impairments on equity and other securities, which was generally in line with extended public equity market declines. Fixed Income Debt Securities The Company has fixed income debt securities carried at amortized cost which are held as collateral for borrowings. The Company intends to hold the investments to maturity. As of August 4, 2023, the Company held $226 million in fixed income debt securities which will mature within one year and $83 million in fixed income debt securities which will mature within two to five years. The following table summarizes the Company’s debt securities as of the dates indicated: August 4, 2023 February 3, 2023 Cost Unrealized Gain Unrealized Loss Carrying Value Cost Unrealized Gain Unrealized Loss Carrying Value (in millions) Fixed income debt securities $ 339 $ 55 $ (85) $ 309 $ 348 $ 65 $ (95) $ 318 |
FINANCIAL SERVICES
FINANCIAL SERVICES | 6 Months Ended |
Aug. 04, 2023 | |
Receivables [Abstract] | |
FINANCIAL SERVICES | FINANCIAL SERVICES The Company offers or arranges various financing options and alternative payment structures for its customers globally. Alternative payment structures consist of various flexible consumption models, including utility, subscription, and as-a-Service models. Financing options are offered to our customers primarily through Dell Financial Services and its affiliates (“DFS”). The Company also arranges financing for some of its customers in various countries where DFS does not currently operate as a captive enterprise. The key activities of DFS include originating, collecting, and servicing customer financing arrangements primarily related to the purchase or use of Dell Technologies products and services. In some cases, DFS also offers financing for the purchase of third-party technology products that complement the Dell Technologies portfolio of products and services. New financing originations were $2.4 billion and $2.3 billion for the three months ended August 4, 2023 and July 29, 2022, respectively, and $4.2 billion and $4.4 billion for the six months ended August 4, 2023 and July 29, 2022, respectively. The Company’s lease and loan arrangements with customers are aggregated primarily 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. As described in Note 1 to the Notes to the Condensed Consolidated Financial Statements, on July 12, 2023, the Company entered into a definitive agreement with Comenity Capital Bank, a subsidiary of Bread Financial Holdings, Inc., to establish a new U.S. DPA program under which transactions will be originated, owned, serviced, and collected by Bread. Under the definitive agreement, the Company will also sell its U.S. consumer revolving customer receivables portfolio. Upon the completion of the sale, such receivables will be serviced by Bread and the Company will have no continuing involvement. The transaction is expected to close in the third quarter of Fiscal 2024, subject to customary closing conditions. In accordance with applicable accounting guidance, the Company concluded that the U.S. consumer revolving customer financing receivables have met the criteria to be classified as held for sale as of August 4, 2023. Accordingly, the Company reclassified $389 million, net of allowance, to current assets held for sale on the Condensed Consolidated Statements of Financial Position as of August 4, 2023. Fixed-term leases and loans — The Company enters into financing arrangements with customers who seek lease financing for equipment. DFS leases are generally classified as sales-type leases or operating leases. 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 Flexible consumption models, as defined above, enable the Company to offer its customers the option to pay over time to provide them with financial flexibility to meet their changing technological requirements. Such models may result in identification of embedded lease arrangements that lead to the recognition of operating or sales-type leases. Financing Receivables The following table presents the components of the Company’s financing receivables segregated by portfolio segment as of the dates indicated: August 4, 2023 February 3, 2023 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross (a) (b) $ 180 $ 10,439 $ 10,619 $ 685 $ 10,293 $ 10,978 Allowances for losses (9) (140) (149) (88) (113) (201) Customer receivables, net 171 10,299 10,470 597 10,180 10,777 Residual interest — 150 150 — 142 142 Financing receivables, net $ 171 $ 10,449 $ 10,620 $ 597 $ 10,322 $ 10,919 Short-term $ 171 $ 4,636 $ 4,807 $ 597 $ 4,684 $ 5,281 Long-term $ — $ 5,813 $ 5,813 $ — $ 5,638 $ 5,638 ____________________ (a) Customer receivables, gross include amounts due from customers under revolving loans, fixed-term loans, fixed-term leases, and accrued interest. (b) The decrease in revolving customer financing receivables is attributable to the reclassification of the U.S. consumer revolving portfolio to current assets held for sale, as described above. The following table presents the changes in allowance for financing receivable losses for the periods indicated: Three Months Ended August 4, 2023 July 29, 2022 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 84 $ 135 $ 219 $ 94 $ 87 $ 181 Charge-offs, net of recoveries (16) (1) (17) (12) (2) (14) Provision charged to income statement 15 6 21 9 7 16 Held for sale adjustment (74) — (74) — — — Balances at end of period $ 9 $ 140 $ 149 $ 91 $ 92 $ 183 Six Months Ended August 4, 2023 July 29, 2022 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 88 $ 113 $ 201 $ 102 $ 87 $ 189 Charge-offs, net of recoveries (33) (2) (35) (25) (4) (29) Provision charged to income statement 28 29 57 14 9 23 Held for sale adjustment (74) — (74) — — — Balances at end of period $ 9 $ 140 $ 149 $ 91 $ 92 $ 183 The Company recognizes an allowance for financing receivable losses, including both the lease receivable and unguaranteed residual, in an amount equal to the expected losses net of recoveries. The allowance for financing receivable losses on the lease receivable is determined based on various factors, including lifetime expected losses determined using macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios as well as past due receivables, receivable type, and customer risk profile. The Company continues to monitor broader economic indicators and their potential impact on future credit loss performance. 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: August 4, 2023 February 3, 2023 Current Past Due Past Due Total Current Past Due Past Due Total (in millions) Revolving — DPA $ 7 $ — $ — $ 7 $ 457 $ 34 $ 17 $ 508 Revolving — DBC 151 18 4 173 154 19 4 177 Fixed-term — Consumer and Commercial 9,412 969 58 10,439 9,309 927 57 10,293 Total customer receivables, gross $ 9,570 $ 987 $ 62 $ 10,619 $ 9,920 $ 980 $ 78 $ 10,978 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 transactions. Aging is also impacted by the timing of the Company’s 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 the collectibility of a specific customer receivable. The 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. Credit Quality The following tables present customer receivables, gross, including accrued interest, by credit quality indicator, segregated by class, as of the dates indicated: August 4, 2023 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2024 2023 2022 2021 2020 Years Prior Revolving — DPA Revolving — DBC Total (in millions) Higher $ 1,997 $ 2,453 $ 1,267 $ 617 $ 206 $ 10 $ 1 $ 45 $ 6,596 Mid 611 1,205 480 214 63 5 3 50 2,631 Lower 288 615 266 99 40 3 3 78 1,392 Total $ 2,896 $ 4,273 $ 2,013 $ 930 $ 309 $ 18 $ 7 $ 173 $ 10,619 February 3, 2023 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2023 2022 2021 2020 2019 Years Prior Revolving — DPA Revolving — DBC Total (in millions) Higher $ 3,210 $ 1,805 $ 914 $ 343 $ 37 $ 1 $ 123 $ 44 $ 6,477 Mid 1,242 631 362 119 17 1 136 54 2,562 Lower 1,017 364 157 65 7 1 249 79 1,939 Total $ 5,469 $ 2,800 $ 1,433 $ 527 $ 61 $ 3 $ 508 $ 177 $ 10,978 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, 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 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 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 The following table presents 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Net revenue — products $ 292 $ 219 $ 539 $ 439 Cost of net revenue — products 192 164 388 368 Gross margin — products $ 100 $ 55 $ 151 $ 71 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 Statement of Financial Position as of the date indicated: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 1,445 Fiscal 2025 2,063 Fiscal 2026 1,540 Fiscal 2027 822 Fiscal 2028 and beyond 297 Total undiscounted cash flows 6,167 Fixed-term loans 5,163 Revolving loans 180 Less: Unearned income (891) Total customer receivables, gross $ 10,619 Operating Leases The Company’s operating leases primarily consist of DFS captive fixed-term leases and contractually committed embedded leases identified within flexible consumption arrangements. 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: August 4, 2023 February 3, 2023 (in millions) Equipment under operating lease, gross $ 3,833 $ 3,725 Less: Accumulated depreciation (1,687) (1,517) Equipment under operating lease, net $ 2,146 $ 2,208 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Income related to lease payments $ 330 $ 253 $ 651 $ 485 Depreciation expense $ 236 $ 194 $ 469 $ 359 The following table presents the future payments to be received by the Company as lessor in operating lease contracts as of the date indicated: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 623 Fiscal 2025 918 Fiscal 2026 544 Fiscal 2027 192 Fiscal 2028 and beyond 71 Total $ 2,348 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 and excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business: August 4, 2023 February 3, 2023 DFS debt (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 3,067 $ 3,987 Fixed-term securitization offerings 3,471 2,679 Other 58 76 Total DFS U.S. debt 6,596 6,742 DFS international debt: Securitization facility 793 790 Other borrowings 762 871 Note payable 250 250 Dell Bank senior unsecured eurobonds 1,642 1,637 Total DFS international debt 3,447 3,548 Total DFS debt $ 10,043 $ 10,290 Total short-term DFS debt $ 5,801 $ 5,400 Total long-term DFS debt $ 4,242 $ 4,890 DFS U.S. Debt Asset-Based Financing and Securitization Facilities — The Company maintains separate asset-based financing facilities and a securitization facility in the United States, which are revolving facilities for fixed-term leases and loans and for revolving loans, respectively. This debt is collateralized solely by the U.S. loan and lease payments and associated equipment in the facilities. The debt has a variable interest rate and the duration of the debt is based on the terms of the underlying loan and lease payment streams. As of August 4, 2023, the total debt capacity related to the U.S. asset-based financing and securitization facilities was $5.6 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 7 of the Notes to the Condensed Consolidated Financial Statements for additional information about interest rate swaps. The Company’s two U.S. asset-based financing facilities for fixed-term leases and loans are effective through July 7, 2025 and June 21, 2024, respectively. The Company’s U.S. securitization facility for revolving loans is effective through June 25, 2025. The Company intends to pay down the U.S. securitization facility for revolving loans prior to the close of the U.S. consumer revolving customer receivables portfolio sale described above. 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 August 4, 2023, 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 lease and loan payments and associated equipment, which are held by Special Purpose Entities (“SPEs”), as discussed below. The interest rate on these securities is fixed and ranges from 0.43% to 6.80% per annum as of August 4, 2023, and the duration of these securities is based on the terms of the underlying lease and loan payment streams. DFS International Debt Securitization Facility — The Company maintains a securitization facility in Europe for fixed-term leases and loans. The debt under this facility has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. This facility is effective through December 23, 2024 and had a total debt capacity of $876 million as of August 4, 2023. 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 August 4, 2023, these criteria were met. Other Borrowings — In connection with the Company’s international financing operations, the Company has entered into revolving structured financing debt programs related to its fixed-term lease and loan products sold in Canada, Europe, Australia, New Zealand, and the Middle East. The debt under these programs has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. The Canadian facility, which is collateralized solely by Canadian loan and lease payments and associated equipment, had a total debt capacity of $337 million as of August 4, 2023 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 $657 million as of August 4, 2023 and is effective through June 14, 2025. 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 $295 million as of August 4, 2023 and is effective through April 20, 2025. The Middle East facility, which is collateralized solely by Middle East loan and lease payments and associated equipment, had a total debt capacity of $150 million as of August 4, 2023 and is effective through March 24, 2025. Note Payable — On May 25, 2022, the Company entered into an unsecured credit agreement to fund receivables in Mexico. As of August 4, 2023, the aggregate principal amount of the note payable was $250 million. The note bears interest at an annual rate of 4.24% and will mature on May 31, 2024. Dell Bank Senior Unsecured Eurobonds — On June 24, 2020, Dell Bank issued 500 million Euro of 1.625% senior unsecured four year eurobonds due June 2024. On October 27, 2021, Dell Bank issued 500 million Euro of 0.5% senior unsecured five year eurobonds due October 2026. On October 18, 2022, Dell Bank issued 500 million Euro of 4.5% senior unsecured five year eurobonds due October 2027. 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 lease and loan payments and associated equipment to SPEs that meet the definition of a VIE and are consolidated, along with the associated debt described above, into the Condensed Consolidated Financial Statements as the Company is the primary beneficiary of the 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 lease and loan 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 the assets and liabilities held by the consolidated VIEs as of the dates indicated, which are included in the Condensed Consolidated Statements of Financial Position: August 4, 2023 February 3, 2023 (in millions) Assets held by consolidated VIEs Other current assets $ 282 $ 274 Current assets held for sale $ 366 $ — Financing receivables, net of allowance Short-term $ 3,256 $ 3,702 Long-term $ 3,298 $ 3,295 Property, plant, and equipment, net $ 1,142 $ 1,164 Liabilities held by consolidated VIEs Debt, net of unamortized debt issuance costs Short-term $ 4,556 $ 4,761 Long-term $ 2,760 $ 2,685 Lease and loan payments and associated equipment transferred via securitization through SPEs were $1.1 billion and $1.2 billion for the three months ended August 4, 2023 and July 29, 2022, respectively, and $2.6 billion and $2.9 billion for the six months ended August 4, 2023 and July 29, 2022, respectively. Customer Receivable Sales To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term customer receivables to unrelated third parties on a periodic basis, without recourse. The amount of customer receivables sold for this purpose was $187 million and $425 million for the six months ended August 4, 2023 and July 29, 2022, respectively. The Company’s continuing involvement in these customer receivables is primarily limited to servicing arrangements. |
LEASES
LEASES | 6 Months Ended |
Aug. 04, 2023 | |
Leases [Abstract] | |
LEASES | 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 August 4, 2023, the remaining terms of the Company’s leases range from one month to approximately ten years. As of August 4, 2023 and February 3, 2023, there were no material finance leases in which the Company was a lessee. 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 4 of the Notes to the Condensed Consolidated Financial Statements for more information about the Company’s lessor arrangements. The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Operating lease costs $ 63 $ 68 $ 142 $ 140 Variable costs 19 23 43 48 Total lease costs $ 82 $ 91 $ 185 $ 188 For both the six months ended August 4, 2023 and July 29, 2022, 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 August 4, 2023 February 3, 2023 (in millions, except for term and discount rate) Operating lease right-of-use assets Other non-current assets $ 716 $ 725 Current operating lease liabilities Accrued and other current liabilities $ 255 $ 260 Non-current operating lease liabilities Other non-current liabilities 600 630 Total operating lease liabilities $ 855 $ 890 Weighted-average remaining lease term (in years) 4.44 4.95 Weighted-average discount rate 4.12 % 3.48 % The following table presents supplemental cash flow information related to leases for the periods indicated: Six Months Ended August 4, 2023 July 29, 2022 (in millions) Cash paid for amounts included in the measurement of lease liabilities — $ 153 $ 156 Right-of-use assets obtained in exchange for new operating lease liabilities $ 131 $ 103 The following table presents the future maturity 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: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 131 Fiscal 2025 232 Fiscal 2026 182 Fiscal 2027 145 Fiscal 2028 104 Thereafter 140 Total lease payments 934 Less: Imputed interest (79) Total $ 855 Current operating lease liabilities $ 255 Non-current operating lease liabilities $ 600 As of August 4, 2023, the Company’s undiscounted operating leases that had not yet commenced were immaterial. |
DEBT
DEBT | 6 Months Ended |
Aug. 04, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes the Company’s outstanding debt as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Senior Notes: 5.45% due June 2023 $ — $ 1,000 4.00% due July 2024 1,000 1,000 5.85% due July 2025 1,000 1,000 6.02% due June 2026 3,500 4,500 4.90% due October 2026 1,750 1,750 6.10% due July 2027 500 500 5.25% due February 2028 1,000 1,000 5.30% due October 2029 1,750 1,750 6.20% due July 2030 750 750 5.75% due February 2033 1,000 1,000 8.10% due July 2036 1,000 1,000 3.38% due December 2041 982 1,000 8.35% due July 2046 800 800 3.45% due December 2051 1,099 1,250 Legacy Notes and Debentures: 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 264 264 DFS Debt (Note 4) 10,043 10,290 Other 262 325 Total debt, principal amount $ 27,388 $ 29,867 Unamortized discount, net of unamortized premium (119) (133) Debt issuance costs (131) (146) Total debt, carrying value $ 27,138 $ 29,588 Total short-term debt, carrying value $ 6,961 $ 6,573 Total long-term debt, carrying value $ 20,177 $ 23,015 During the six months ended August 4, 2023, the net decrease in the Company’s debt balance was principally attributable to: • the repayment of $1 billion principal amount of the 5.45% Senior Notes due June 2023; and • the repayment of $1 billion principal amount of the 6.02% Senior Notes due June 2026 in a tender offer, in connection with which the Company recognized an immaterial amount of debt extinguishment costs in interest and other, net in the Condensed Consolidated Statement of Income. Outstanding Debt Senior Notes — The Company completed offerings of multiple series of senior notes which were issued on June 1, 2016, June 22, 2016, March 20, 2019, April 9, 2020, December 13, 2021, and January 24, 2023 in aggregate principal amounts of $20.0 billion, $3.3 billion, $4.5 billion, $2.3 billion, $2.3 billion, and $2.0 billion, respectively (the “Senior Notes”). Interest on these borrowings is payable semiannually. Legacy Notes and Debentures — The Company has outstanding unsecured notes and debentures (collectively, the “Legacy Notes and Debentures”) that were issued by Dell Inc. (“Dell”), a wholly-owned subsidiary of Dell Technologies Inc., prior to the acquisition of Dell by Dell Technologies Inc. in the going-private transaction that closed in October 2013. Interest on these borrowings is payable semiannually. DFS Debt — See Note 4 and Note 7 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. 2021 Revolving Credit Facility — The Company’s revolving credit facility, which was entered into on November 1, 2021 (the “2021 Revolving Credit Facility”), matures on November 1, 2027. This facility provides the Company with revolving commitments in an aggregate principal amount of $6.0 billion for general corporate purposes, including liquidity support for the Company’s commercial paper program, and includes a letter of credit sub-facility of up to $0.5 billion and a swing-line loan sub-facility of up to $0.5 billion. The 2021 Revolving Credit Facility also allows the Company to obtain incremental additional commitments on one or more occasions in minimum amounts of $10 million. Borrowings under the 2021 Revolving Credit Facility bear interest at a rate per annum equal to an applicable margin plus, at the borrowers’ option, either (a) the specified adjusted term Secured Overnight Financing Rate (“SOFR”) or (b) a base rate. The margin applicable to SOFR and base rate borrowings varies based upon the Company’s existing credit ratings. The base rate is calculated based upon the greatest of the specified prime rate, the specified federal reserve bank rate, or SOFR plus 1%. The borrowers may voluntarily repay outstanding loans under the 2021 Revolving Credit Facility at any time without premium or penalty, other than customary breakage costs. As of August 4, 2023, the Company had no outstanding borrowings under the 2021 Revolving Credit Facility. Commercial Paper Program — During Fiscal 2023, the Company established a commercial paper program under which the Company may issue unsecured notes in a maximum aggregate face amount of $5.0 billion outstanding at any time, with maturities up to 397 days from the date of issuance. The notes are sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the notes are used for general corporate purposes. As of August 4, 2023, the Company had no outstanding borrowings under the commercial paper program. The Company may purchase, redeem, prepay, refinance, or otherwise retire any amount of outstanding indebtedness under the terms of such indebtedness at any time and from time to time, in open market or negotiated transactions with the holders of such indebtedness or otherwise, as considered appropriate in light of market conditions and other relevant factors. Covenants — The credit agreement governing the 2021 Revolving Credit Facility and the indentures governing the Senior Notes and the Legacy Notes and Debentures impose various limitations, subject to exceptions, on creating certain liens and entering into sale and lease-back transactions. The foregoing credit agreement and indentures contain customary events of default, including failure to make required payments, failure to comply with covenants, and the occurrence of certain events of bankruptcy and insolvency. The 2021 Revolving Credit Facility is also subject to an interest coverage ratio covenant that is tested at the end of each fiscal quarter with respect to the Company’s preceding four fiscal quarters. The Company was in compliance with this financial covenant as of August 4, 2023. Aggregate Future Maturities The following table presents the aggregate future maturities of the Company’s debt as of August 4, 2023 for the periods indicated: Maturities by Fiscal Year 2024 (remaining six months) 2025 2026 2027 2028 Thereafter Total (in millions) Senior Notes $ — $ 1,000 $ 1,000 $ 5,250 $ 500 $ 8,381 $ 16,131 Legacy Notes and Debentures — — — — — 952 952 DFS Debt 2,827 4,341 1,511 773 590 1 10,043 Other 100 122 27 8 5 — 262 Total maturities, principal amount 2,927 5,463 2,538 6,031 1,095 9,334 27,388 Associated carrying value adjustments (2) (7) (7) (36) (8) (190) (250) Total maturities, carrying value amount $ 2,925 $ 5,456 $ 2,531 $ 5,995 $ 1,087 $ 9,144 $ 27,138 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Aug. 04, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 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 instruments. For derivatives designated as fair value hedges, the Company assesses hedge effectiveness on qualifying instruments using the shortcut method whereby the hedges are considered perfectly effective at the onset of the hedge and over the life of the hedging relationship. Foreign Exchange Risk The Company uses foreign currency forward and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted transactions denominated in currencies other than the U.S. Dollar. Hedge accounting is applied based upon the criteria established by accounting guidance for derivative instruments and hedging activities. The risk of loss associated with purchased options is limited to premium amounts paid for the option contracts. The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The majority of these contracts typically expire in twelve months or less. During the three and six months ended August 4, 2023 and July 29, 2022, 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 DFS operations 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 in order to match the floating rate nature of the banks’ funding pool. The Company also uses interest rate swaps to manage the cash flows related to interest payments on Eurobonds. The interest rate swaps economically convert the fixed rate on its bonds to a floating rate to match the underlying lease repayments profile. 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 or floating British Pound or U.S. Dollar amount and receives a fixed or 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. Periodically, the Company also uses interest rate swaps to modify the market risk exposures in connection with long-term debt. During Fiscal 2023, the Company entered into interest rate swaps designated as fair value hedges intended to hedge a portion of its interest rate exposure by converting the fixed interest rate of a certain tranche of debt to a floating interest rate based on the benchmark SOFR Overnight Index Swap rate. The gains and losses related to changes in the fair value of the interest rate swaps perfectly offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in the underlying benchmark interest rate. During the three months ended August 4, 2023, the Company repaid the hedged debt and terminated the associated interest rate swaps. Derivative Instruments The following table presents the notional amounts of outstanding derivative instruments as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 7,245 $ 7,746 Non-designated as hedging instruments 6,434 6,833 Total $ 13,679 $ 14,579 Interest rate contracts: Designated as fair value hedging instruments $ — $ 1,000 Non-designated as hedging instruments 6,395 7,214 Total $ 6,395 $ 8,214 The following table presents the effect of derivative instruments designated as cash flow hedging instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income for the periods indicated: 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 August 4, 2023: Total net revenue $ (63) Foreign exchange contracts $ 49 Total cost of net revenue (5) Interest rate contracts — Interest and other, net — Total $ 49 Total $ (68) For the three months ended July 29, 2022: Total net revenue $ 307 Foreign exchange contracts $ 166 Total cost of net revenue (1) Interest rate contracts — Interest and other, net — Total $ 166 Total $ 306 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 six months ended August 4, 2023: Total net revenue $ (151) Foreign exchange contracts $ 59 Total cost of net revenue (8) Interest rate contracts — Interest and other, net — Total $ 59 Total $ (159) For the six months ended July 29, 2022: Total net revenue $ 430 Foreign exchange contracts $ 538 Total cost of net revenue (28) Interest rate contracts — Interest and other, net — Total $ 538 Total $ 402 The following table presents the effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 Location of Gain (Loss) Recognized (in millions) Foreign exchange contracts $ (40) $ (74) $ 17 $ (305) Interest and other, net Interest rate contracts 24 1 3 18 Interest and other, net Total $ (16) $ (73) $ 20 $ (287) The Company presents its 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: August 4, 2023 Other Current Other Non-Current Assets Other Current Liabilities Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 114 $ — $ 5 $ — $ 119 Foreign exchange contracts in a liability position (18) — (4) — (22) Interest rate contracts in an asset position — — — — — Interest rate contracts in a liability position — — — — — Net asset (liability) 96 — 1 — 97 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 163 1 29 — 193 Foreign exchange contracts in a liability position (149) — (68) — (217) Interest rate contracts in an asset position 6 68 — — 74 Interest rate contracts in a liability position — — (21) (17) (38) Net asset (liability) 20 69 (60) (17) 12 Total derivatives at fair value $ 116 $ 69 $ (59) $ (17) $ 109 February 3, 2023 Other Current Other Non-Current Assets Other Current Liabilities Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 7 $ — $ 30 $ — $ 37 Foreign exchange contracts in a liability position (21) — (142) — (163) Interest rate contracts in an asset position — — — — — Interest rate contracts in a liability position — — — (6) (6) Net asset (14) — (112) (6) (132) Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 282 1 368 — 651 Foreign exchange contracts in a liability position (121) — (614) (1) (736) Interest rate contracts in an asset position 14 133 — — 147 Interest rate contracts in a liability position — — — (95) (95) Net asset (liability) 175 134 (246) (96) (33) Total derivatives at fair value $ 161 $ 134 $ (358) $ (102) $ (165) 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: August 4, 2023 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 $ 386 $ (201) $ 185 $ — $ (43) $ 142 Financial liabilities (277) 201 (76) — 17 (59) Total derivative instruments $ 109 $ — $ 109 $ — $ (26) $ 83 February 3, 2023 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 $ 835 $ (540) $ 295 $ — $ — $ 295 Financial liabilities (1,000) 540 (460) — 25 (435) Total derivative instruments $ (165) $ — $ (165) $ — $ 25 $ (140) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Aug. 04, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The Infrastructure Solutions Group and Client Solutions Group 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 VMware Resale, 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 Other Businesses Total (in millions) Balances as of February 3, 2023 $ 15,017 $ 4,232 $ 427 $ 19,676 Impact of foreign currency translation and other (36) — — (36) Balances as of August 4, 2023 $ 14,981 $ 4,232 $ 427 $ 19,640 Intangible Assets The following table presents the Company’s intangible assets as of the dates indicated: August 4, 2023 February 3, 2023 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 16,956 $ (14,703) $ 2,253 $ 16,956 $ (14,474) $ 2,482 Developed technology 9,466 (8,817) 649 9,466 (8,660) 806 Trade names 875 (802) 73 875 (780) 95 Definite-lived intangible assets 27,297 (24,322) 2,975 27,297 (23,914) 3,383 Indefinite-lived trade names 3,085 — 3,085 3,085 — 3,085 Total intangible assets $ 30,382 $ (24,322) $ 6,060 $ 30,382 $ (23,914) $ 6,468 Amortization expense related to definite-lived intangible assets was $209 million and $244 million for the three months ended August 4, 2023 and July 29, 2022, respectively, and $408 million and $487 million for the six months ended August 4, 2023 and July 29, 2022, respectively. There were no material impairment charges related to intangible assets during the three or six months ended August 4, 2023 and July 29, 2022. The following table presents the estimated future annual pre-tax amortization expense of definite-lived intangible assets as of the date indicated: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 408 Fiscal 2025 644 Fiscal 2026 484 Fiscal 2027 376 Fiscal 2028 220 Thereafter 843 Total $ 2,975 Goodwill and Indefinite-Lived 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 during the third quarter of Fiscal 2023, 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 perform 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. 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. These methodologies require 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 Fiscal 2023, the fair values of each of the reporting units and indefinite-lived intangibles exceeded their carrying values. No goodwill or indefinite-lived assets impairment test was performed during the six months ended August 4, 2023. |
DEFERRED REVENUE
DEFERRED REVENUE | 6 Months Ended |
Aug. 04, 2023 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUE | DEFERRED REVENUE Deferred revenue consists of support and deployment services, software maintenance, training, Software-as-a-Service, and undelivered hardware and professional services, consisting of installations and consulting engagements. Deferred revenue is recorded when the Company has invoiced or payments have been received for undelivered products or services where transfer of control has not occurred. Revenue is 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Deferred revenue: Deferred revenue at beginning of period $ 29,695 $ 27,403 $ 30,286 $ 27,573 Revenue deferrals 6,025 5,572 10,744 10,547 Revenue recognized (5,408) (4,950) (10,718) (9,930) Other (a) — — — (165) Deferred revenue at end of period $ 30,312 $ 28,025 $ 30,312 $ 28,025 Short-term deferred revenue $ 16,174 $ 14,724 $ 16,174 $ 14,724 Long-term deferred revenue $ 14,138 $ 13,301 $ 14,138 $ 13,301 ____________________ (a) For the six months ended July 29, 2022, Other represents the reclassification of deferred revenue to accrued and other liabilities. 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 August 4, 2023 was approximately $39 billion. The Company expects to recognize approximately 58% 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 cancelable contracts where there is no substantive termination penalty. The Company applied the practical expedient to exclude the value of remaining performance obligations for contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that have not materialized, and adjustments for currency. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Aug. 04, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters The Company is involved in various claims, suits, assessments, investigations, and legal proceedings that arise from time to time in the ordinary course of its business, including those identified below, consisting of matters involving consumer, antitrust, tax, intellectual property, and other issues on a global basis. The Company accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals at least quarterly and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in the Company’s accrued liabilities are recorded in the period in which such 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 — 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. 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. Certain stockholders of the Company, subsequently brought class action complaints arising out of the Class V transaction in which they named as defendants (collectively, the “defendants”) Michael S. Dell and certain other directors serving on the Company’s board of directors at the time of the Class V transaction (collectively, the “director defendants”), certain stockholders of the Company, consisting of Mr. Dell and Silver Lake Group LLC and certain of its affiliated funds (collectively, the “stockholder defendants”), and Goldman Sachs & Co. LLC (“Goldman Sachs”), which served as financial advisor to the Company in connection with the transaction. The plaintiffs generally alleged that the director defendants and the stockholder defendants breached their fiduciary duties under Delaware law to the former holders of the Class V Common Stock in connection with the Class V transaction by offering a transaction value that was allegedly billions of dollars below fair value. As previously reported, during the fourth quarter of Fiscal 2023, the plaintiffs and the defendants entered into an agreement to settle the lawsuit. Under the terms of the settlement, the plaintiffs agreed to the dismissal of all claims upon payment of a total of $1.0 billion (the “settlement amount”), which includes all costs, expenses and fees of the plaintiff class relating to the action and its resolution. The settlement terms required that the settlement amount be paid by the Company and/or the Company’s insurers pursuant to indemnification obligations of the Company to the defendants. The Company is subject to indemnification obligations, upon the satisfaction of specified conditions, to the director and stockholder defendants and their affiliates pursuant to provisions of the Delaware General Corporation Law, the Company’s certificate of incorporation and bylaws, and agreements with the defendants. A special committee of the Board of Directors consisting of directors who were not defendants in the action, advised by independent counsel, informed the Board of Directors of its determination that the defendants are entitled to indemnification under the foregoing obligations. During Fiscal 2023, the Company established a $1.0 billion liability on the Consolidated Statements of Financial Position and recognized $0.9 billion expense, net of $106 million in insurance proceeds, within interest and other, net within the Consolidated Statements of Income related to the settlement agreement. The Company accounted for the expected insurance proceeds as a loss recovery and recognized a benefit within interest and other, net within the Condensed Consolidated Statements of Income and corresponding receivable on the Condensed Consolidated Statements of Financial Position. On May 16, 2023, the Company paid the settlement amount following approval of the settlement by the Delaware Court of Chancery. The payment is reflected within cash flows from operating activities within the Condensed Consolidated Statements of Cash Flows. The Company does not expect to incur additional expenses with respect to the settlement. Other Litigation — Dell does not currently anticipate that any of the other various legal proceedings it is involved in 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 August 4, 2023, 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 Obligations In the ordinary course of business, the Company enters into various contracts 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 indemnification obligations have not been material to the Company. Under the Separation and Distribution Agreement entered into with VMware, Inc. upon the completion of the spin-off of VMware, Inc. by means of a special stock dividend (the “VMware Spin-off”) on November 1, 2021, Dell Technologies has agreed to indemnify VMware, Inc., each of its subsidiaries and each of their respective directors, officers, and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to Dell Technologies as part of the separation of Dell Technologies and VMware, Inc. (individually and together with its subsidiaries, “VMware”) and their respective businesses (the “Separation”). VMware similarly has agreed to indemnify Dell Technologies Inc., each of its subsidiaries and each of their respective directors, officers, and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to VMware as part of the Separation. Dell Technologies expects VMware to fully perform under the terms of the Separation and Distribution Agreement. For information on the cross-indemnifications related to the tax matters agreement between the Company and VMware effective upon the Separation on November 1, 2021, see Note 15 of the Notes to the Condensed Consolidated Financial Statements. |
INCOME AND OTHER TAXES
INCOME AND OTHER TAXES | 6 Months Ended |
Aug. 04, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME AND OTHER TAXES | INCOME AND OTHER TAXES For the three months ended August 4, 2023, the Company’s effective income tax rate was 36.3% on pre-tax income of $0.7 billion compared to 20.3% on pre-tax income of $0.6 billion for the three months ended July 29, 2022. For the six months ended August 4, 2023, the Company’s effective income tax rate was 27.2% on pre-tax income of $1.4 billion compared to 14.8% on pre-tax income of $1.8 billion for the six months ended July 29, 2022. The changes in the Company’s effective income tax rate were attributable to changes in the Company’s jurisdictional mix of income, higher U.S. tax on foreign operations, and the impact of discrete tax items. The differences between the estimated effective income tax rates and the U.S. federal statutory rate of 21% principally result from the geographical distribution of income, differences between the book and tax treatment of certain items, and discrete tax items. 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 subject to these tax holidays and lower tax rates is attributable to Singapore and China. A significant portion of these income tax benefits relates to a tax holiday that will be effective until January 31, 2029. Most of the Company’s other tax holidays will expire in whole or in part during fiscal years 2030 through 2031. 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 or as a result of changes in tax legislation. As of August 4, 2023, the Company was not aware of any matters of noncompliance related to these tax holidays or enacted tax legislative changes affecting these tax holidays. In June 2023, the Company received Revenue Agent’s Reports for the examination by the Internal Revenue Service (“IRS”) of fiscal years 2015 through 2017 and fiscal years 2018 through 2019. The Company agreed with the IRS assessments relating to fiscal years 2015 through 2017 and settled those positions on August 24, 2023. The impact to the financial statements for that settlement is not material. For fiscal years 2018 through 2019, the IRS proposed adjustments primarily relating to certain transactions the Company completed as part of its business integration efforts, with which the Company disagrees and which it will contest through the IRS administrative appeals procedures. In August 2023, subsequent to the close of the Company’s second quarter of fiscal year 2024, the Company submitted a written protest to the IRS relating to certain assessments. The Company anticipates the appeals process for the resolution of these matters will extend beyond the next twelve months. The Company is also currently under income tax audits in various U.S. state and foreign taxing jurisdictions. The Company is undergoing negotiations, and in some cases contested proceedings, relating to tax matters with the taxing authorities in these jurisdictions. 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. The Company believes that it has provided adequate reserves related to all matters contained in tax periods open to examination, including the IRS audits described above. 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. Judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s provision for income taxes. Unrecognized tax benefits were $1.3 billion as of both August 4, 2023 and February 3, 2023 and are included in other non-current liabilities in the Condensed Consolidated Statements of Financial Position. Although timing of resolution or closure of uncertain tax positions is not certain, the Company believes it is reasonably possible that certain tax matters in various jurisdictions could be concluded within the next twelve months. The resolution of these matters could reduce the Company’s unrecognized tax benefits up to $0.4 billion including interest and penalties. Such a reduction would have a material impact on the Company’s effective tax rate. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Aug. 04, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 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 February 3, 2023 $ (747) $ (222) $ (32) $ (1,001) Other comprehensive income before reclassifications 25 59 1 85 Amounts reclassified from accumulated other comprehensive income (loss) — 159 — 159 Total change for the period 25 218 1 244 Balances as of August 4, 2023 $ (722) $ (4) $ (31) $ (757) 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 7 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 Cash Flow Hedges (in millions) Total reclassifications, net of tax: Net revenue $ (63) $ 307 $ (151) $ 430 Cost of net revenue (5) (1) (8) (28) Total reclassifications, net of tax $ (68) $ 306 $ (159) $ 402 |
CAPITALIZATION
CAPITALIZATION | 6 Months Ended |
Aug. 04, 2023 | |
Equity [Abstract] | |
CAPITALIZATION | 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 August 4, 2023 Class A 600 379 379 Class B 200 91 91 Class C 7,900 347 254 Class D 100 — — 8,800 817 724 Common stock as of February 3, 2023 Class A 600 379 379 Class B 200 95 95 Class C 7,900 324 242 Class D 100 — — 8,800 798 716 Preferred Stock The Company is authorized to issue one million shares of preferred stock, par value $0.01 per share. As of August 4, 2023 and February 3, 2023, 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 series of Dell Technologies Common Stock is $0.01 per share. The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings. Voting Rights — Each holder of record of (a) Class A Common Stock is entitled to ten votes per share of Class A Common Stock; (b) Class B Common Stock is entitled to ten votes per share of Class B Common Stock; (c) Class C Common Stock is entitled to one vote per share of Class C Common Stock; and (d) Class D Common Stock is not entitled to any vote on any matter except to the extent required by provisions of Delaware law (in which case such holder is entitled to one vote per share of Class D Common Stock). Conversion Rights — Under the Company’s certificate of incorporation, at any time and from time to time, any holder of Class A Common Stock or Class B Common Stock has the right to convert all or any of the shares of Class A Common Stock or Class B Common Stock, as applicable, held by such holder into shares of Class C Common Stock on a one-to-one basis. During the three months ended August 4, 2023, the Company issued 4,716,548 shares of Class C Common Stock to stockholders upon the 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. Dividends On February 24, 2022, the Company announced that the Board of Directors adopted a dividend policy providing for our payment of quarterly cash dividends on the Dell Technologies Common Stock at a rate of $0.33 per share per fiscal quarter beginning in the first quarter of Fiscal 2023. On March 2, 2023, the Company announced that the Board of Directors approved a 12% increase in the quarterly dividend rate from $0.33 per share per fiscal quarter to a rate of $0.37 per share per fiscal quarter beginning in the first quarter of Fiscal 2024. The Company paid the following dividends during the periods presented: Three Months Ended Declaration Date Record Date Payment Date Dividend per Share Amount ( in millions ) Fiscal 2024 May 5, 2023 March 2, 2023 April 25, 2023 May 5, 2023 $ 0.37 $ 270 August 4, 2023 June 16, 2023 July 25, 2023 August 4, 2023 $ 0.37 $ 268 Fiscal 2023 April 29, 2022 February 24, 2022 April 20, 2022 April 29, 2022 $ 0.33 $ 248 July 29, 2022 June 7, 2022 July 20, 2022 July 29, 2022 $ 0.33 $ 242 During the three and six months ended August 4, 2023, the Company also paid an immaterial amount of dividend equivalents on eligible vested equity awards which are not reflected above. Repurchases of Common Stock Effective as of September 23, 2021, the Company’s Board of Directors approved a stock repurchase program under which the Company is authorized to repurchase up to $5.0 billion of shares of Class C Common Stock with no fixed expiration date. During the six months ended August 4, 2023, the Company repurchased approximately 11 million shares of Class C Common Stock for a total purchase price of approximately $0.5 billion. During the six months ended July 29, 2022, the Company repurchased approximately 42 million shares of Class C Common Stock for a total purchase price of approximately $2.1 billion. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Aug. 04, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive instruments. The Company excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is antidilutive. The following table presents basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 Earnings per share attributable to Dell Technologies Inc. Dell Technologies Common Stock — Basic $ 0.64 $ 0.69 $ 1.44 $ 2.12 Dell Technologies Common Stock — Diluted $ 0.63 $ 0.68 $ 1.42 $ 2.06 The following table presents the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Numerator: Dell Technologies Common Stock Net income attributable to Dell Technologies Inc. - basic and diluted $ 462 $ 511 $ 1,045 $ 1,583 Denominator: Dell Technologies Common Stock weighted-average shares outstanding Weighted-average shares outstanding — basic 726 739 725 746 Dilutive effect of options, restricted stock units, restricted stock, and other 12 16 12 22 Weighted-average shares outstanding — diluted 738 755 737 768 Weighted-average shares outstanding — antidilutive — 15 8 8 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Aug. 04, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS VMware is considered to be a related party of the Company as a result of Michael Dell’s ownership interests in both Dell Technologies and VMware as well as Mr. Dell’s service as Chairman and Chief Executive Officer of Dell Technologies and as Chairman of the Board of VMware, Inc. The information provided below includes a summary of transactions with VMware. Transactions with related parties other than VMware during the periods presented were immaterial, individually and in aggregate. Transactions with VMware Dell Technologies and VMware engage in the following ongoing related party transactions: • Pursuant to original equipment manufacturer and reseller arrangements, Dell Technologies integrates or bundles VMware’s products and services with Dell Technologies’ products and sells them to end-users. Dell Technologies also acts as a distributor, purchasing VMware’s standalone products and services for resale to end-user customers. Where applicable, costs under these arrangements are presented net of rebates received by Dell Technologies. • Dell Technologies procures products and services from VMware for its internal use. For the three and six months ended August 4, 2023 and July 29, 2022, costs incurred associated with products and services purchased from VMware for internal use were immaterial. • Dell Technologies sells and leases products and sells services to VMware. For the three and six months ended August 4, 2023 and July 29, 2022, revenue recognized from sales of services to VMware was immaterial. • DFS provides financing to certain VMware end-users. Upon acceptance of the financing arrangement by both VMware’s end-users and DFS, DFS recognizes amounts due to related parties on the Condensed Consolidated Statements of Financial Position. Associated financing fees are recorded to product net revenue on the Condensed Consolidated Statements of Income and are reflected within sales and leases of products to VMware in the table below. • Dell Technologies and VMware also enter into joint marketing, sales, and branding arrangements, for which both parties may incur costs. For the three and six months ended August 4, 2023 and July 29, 2022, consideration received from VMware for joint marketing, sales, and branding arrangements was immaterial. • Dell Technologies and VMware entered into a transition services agreement in connection with the VMware Spin-off to provide various support services, including investment advisory services, certain support services from Dell Technologies personnel, and other transitional services. Costs associated with this agreement were immaterial for the three and six months ended July 29, 2022. Activities under the agreement concluded during Fiscal 2023. The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended Six Months Ended Classification August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Sales and leases of products to VMware Net revenue - products $ 38 $ 35 $ 78 $ 81 Purchase of VMware products for resale Cost of net revenue - products $ 384 $ 426 $ 591 $ 681 Purchase of VMware services for resale Cost of net revenue - services $ 880 $ 762 $ 1,756 $ 1,471 The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Financial Position as of the dates indicated: Classification August 4, 2023 February 3, 2023 (in millions) Deferred costs related to VMware products and services for resale Other current assets $ 2,898 $ 3,000 Deferred costs related to VMware products and services for resale Other non-current assets $ 2,277 $ 2,537 Due To/From Related Party The following table presents amounts due to and from VMware as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Due from related party, net, current (a) $ 404 $ 378 Due from related party, net, non-current (b) $ 236 $ 440 Due to related party, current (c) $ 1,252 $ 2,067 ____________________ (a) Amounts due from related party, net, current consists of amounts due from VMware, inclusive of current net tax receivables from VMware under the Tax Agreements described below. Amounts, excluding tax, are generally settled in cash within 60 days of each quarter-end. (b) Amounts due from related party, net, non-current consists of the non-current portion of net receivables from VMware under the Tax Agreements. (c) Amounts due to related party, current includes amounts due to VMware, which are generally settled in cash within 60 days of each quarter-end. Related Party Tax Matters Tax Agreements — In connection with the VMware Spin-off and concurrently with the execution of the Separation and Distribution Agreement, effective as of April 14, 2021, Dell Technologies and VMware entered into a Tax Matters Agreement (the “Tax Matters Agreement”) and agreed to terminate the tax sharing agreement as amended on December 30, 2019 (together with the Tax Matters Agreement, the “Tax Agreements”). The Tax Matters Agreement governs Dell Technologies’ and VMware’s respective rights and obligations, both for pre-spin-off periods and post-spin-off periods, regarding income and other taxes, and related matters, including tax liabilities and benefits, attributes, and returns. The timing of the tax payments due to and from related parties is governed by the Tax Agreements. VMware’s portion of the mandatory one-time transition tax on accumulated earnings of foreign subsidiaries (the “Transition Tax”) is governed by a letter agreement between VMware and Dell Technologies entered into on April 1, 2019. Pursuant to the Tax Agreements, net receipts from VMware during the six months ended August 4, 2023 and net payments to VMware during the six months ended July 29, 2022 were immaterial. As a result of the activity under the Tax Agreements with VMware, amounts due from VMware were $484 million and $599 million as of August 4, 2023 and February 3, 2023, respectively, primarily related to VMware’s estimated tax obligation resulting from the Transition Tax. The 2017 Tax Cuts and Jobs Act included a deferral election for an eight-year installment payment method on the Transition Tax. Dell Technologies expects VMware to pay the remainder of its Transition Tax over a period of two years. Indemnification — Upon consummation of the VMware Spin-off, Dell Technologies recorded net income tax indemnification receivables from VMware related to certain income tax liabilities for which Dell Technologies is jointly and severally liable, but for which it is indemnified by VMware under the Tax Matters Agreement. The amounts that VMware may be obligated to pay Dell Technologies could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. The net receivable as of August 4, 2023 and February 3, 2023 was $93 million and $146 million, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Aug. 04, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has two reportable segments that are based on the following business units: Infrastructure Solutions Group (“ISG”) and Client Solutions Group (“CSG”). ISG enables the Company’s customers’ digital transformation with solutions that address the fundamental shift to multicloud environments, machine learning, artificial intelligence (“AI”), and data analytics. The Company’s comprehensive storage portfolio includes traditional as well as next-generation storage solutions, including all-flash arrays, scale-out file, object platforms, hyperconverged infrastructure, and software-defined storage. The Company’s server portfolio includes high-performance rack, blade, and tower servers. The Company’s servers are designed with the capability to run high value workloads across customers’ IT environments, including the training, fine-tuning, and operationalization of AI models. The ISG networking portfolio helps the Company’s 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, docking stations, and other electronics), as well as third-party software and peripherals. CSG also includes services offerings, including support and deployment, configuration, and extended warranty services. 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 operating results of other businesses, unallocated corporate transactions, the impact of purchase accounting, amortization of intangible assets, transaction-related expenses, stock-based compensation expense, and other corporate expenses, as applicable. The Company does not allocate assets to the above reportable segments for internal reporting purposes. Pursuant to the Commercial Framework Agreement (the “CFA”) established between Dell Technologies and VMware in connection with the VMware Spin-off, Dell Technologies continues to act as a distributor of VMware’s standalone products and services and purchase such products and services for resale to end-user customers (“VMware Resale”). Dell Technologies also continues to integrate VMware’s products and services with Dell Technologies’ offerings and sell them to end users. The results of standalone VMware Resale transactions are reflected in other businesses. The results of integrated offering transactions are reflected within CSG or ISG, depending upon the nature of the underlying offering sold. 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 segment operating income to the Company’s consolidated operating income for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Consolidated net revenue: Infrastructure Solutions Group $ 8,461 $ 9,536 $ 16,054 $ 18,821 Client Solutions Group 12,942 15,490 24,925 31,077 Reportable segment net revenue 21,403 25,026 40,979 49,898 Other businesses (a) 1,528 1,399 2,871 2,638 Unallocated transactions (b) 3 — 6 5 Total consolidated net revenue $ 22,934 $ 26,425 $ 43,856 $ 52,541 Consolidated operating income: Infrastructure Solutions Group $ 1,049 $ 1,046 $ 1,789 $ 2,128 Client Solutions Group 969 978 1,861 2,093 Reportable segment operating income 2,018 2,024 3,650 4,221 Other businesses (a) (44) (71) (80) (135) Unallocated transactions (b) 3 (1) 5 1 Impact of purchase accounting (c) (4) (3) (8) (12) Amortization of intangibles (209) (244) (408) (487) Transaction-related expenses (d) (3) (3) (6) (8) Stock-based compensation expense (e) (223) (236) (448) (468) Other corporate expenses (f) (373) (196) (471) (292) Total consolidated operating income $ 1,165 $ 1,270 $ 2,234 $ 2,820 ____________________ (a) Other businesses consists of (i) VMware Resale, (ii) Secureworks, and (iii) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively. (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 that was completed in September 2016. (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 severance, impairment charges, facility action, payroll taxes associated with stock-based compensation, 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Net revenue: Infrastructure Solutions Group: Servers and networking $ 4,274 $ 5,209 $ 8,111 $ 10,257 Storage 4,187 4,327 7,943 8,564 Total ISG net revenue $ 8,461 $ 9,536 $ 16,054 $ 18,821 Client Solutions Group: Commercial $ 10,554 $ 12,141 $ 20,416 $ 24,112 Consumer 2,388 3,349 4,509 6,965 Total CSG net revenue $ 12,942 $ 15,490 $ 24,925 $ 31,077 |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | 6 Months Ended |
Aug. 04, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION The following table presents additional information on selected assets included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 8,364 $ 8,607 Restricted cash - other current assets (a) 281 272 Restricted cash - other non-current assets (a) 5 15 Total cash, cash equivalents, and restricted cash $ 8,650 $ 8,894 Inventories: Production materials $ 2,197 $ 3,225 Work-in-process 604 708 Finished goods 783 843 Total inventories $ 3,584 $ 4,776 Deferred Costs: Total deferred costs, current (b) $ 5,837 $ 5,459 Property, plant, and equipment, net: Computer equipment $ 7,385 $ 6,899 Land and buildings 2,936 3,059 Machinery and other equipment 3,227 3,134 Total property, plant, and equipment 13,548 13,092 Accumulated depreciation and amortization (7,296) (6,883) Total property, plant, and equipment, net $ 6,252 $ 6,209 ____________________ (a) Restricted cash includes cash required to be held in escrow pursuant to DFS securitization arrangements. (b) Deferred costs are included in other current assets in the Condensed Consolidated Statements of Financial Position. Amounts classified as long-term deferred costs are included in other non-current assets and are not disclosed above. Warranty Liability The following table presents changes in the Company’s liability for standard limited warranties for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Warranty liability: Warranty liability at beginning of period $ 438 $ 468 $ 467 $ 480 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) 202 244 398 467 Service obligations honored (201) (249) (426) (484) Warranty liability at end of period $ 439 $ 463 $ 439 $ 463 ____________________ (a) Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. The Company’s warranty liability process does not differentiate between estimates made for pre-existing warranties and those made for new warranty obligations. Severance Charges The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Severance liability: Severance liability at beginning of period $ 162 $ 63 $ 408 $ 74 Severance charges 364 46 412 63 Cash paid and other (69) (21) (363) (49) Severance liability at end of period $ 457 $ 88 $ 457 $ 88 The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Severance charges: Cost of net revenue $ 27 $ (2) $ 48 $ 1 Selling, general, and administrative 324 46 350 57 Research and development 13 2 14 5 Total severance charges $ 364 $ 46 $ 412 $ 63 Supply Chain Finance Program The Company maintains a Supply Chain Finance Program (the “SCF Program”), which enables eligible suppliers of the Company, at the supplier's sole discretion, to sell receivables due from the Company to a third-party financial institution. The Company has no involvement in establishing the terms or conditions of the arrangement between its suppliers and the financial institution and no economic interest in a supplier's decision to sell a receivable. Suppliers may elect to sell varying amounts of their outstanding receivables as part of the SCF Program. The Company does not provide secured legal assets or other forms of guarantees under the arrangement. The SCF Program does not impact the Company's liquidity as payments for participating supplier invoices are remitted by the Company to the financial institution on the original invoice due date. Further, the Company negotiates payment terms with suppliers regardless of their decision to participate in the SCF Program. Payment terms with such suppliers vary and do not exceed 120 days. Any amounts due to the financial institution for suppliers participating in the SCF Program are recorded within Accounts Payable on the Company's Condensed Consolidated Statements of Financial Position and associated payments are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. As of August 4, 2023 and February 3, 2023, the Company had $1.1 billion and $1.0 billion, respectively, included within Accounts Payable representing invoices due to suppliers confirmed as valid under the SCF Program. Interest and other, net The following table presents information regarding interest and other, net for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Interest and other, net: Investment income, primarily interest $ 66 $ 16 $ 125 $ 31 Loss on investments, net (29) (255) (44) (241) Interest expense (352) (298) (757) (563) Foreign exchange (65) (66) (97) (155) Other (71) (32) (42) (44) Total interest and other, net $ (451) $ (635) $ (815) $ (972) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 04, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS There were no known events occurring after August 4, 2023 and up until the date of issuance of this report that would materially affect the information presented herein. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 462 | $ 511 | $ 1,045 | $ 1,583 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Aug. 04, 2023 shares | Aug. 04, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Richard J. Rothberg [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 6, 2023, Richard J. Rothberg, our General Counsel, adopted a written plan for the sale of up to 49,480 shares of the Company’s Class C Common Stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plan will expire on December 1, 2023, or on any earlier date on which all of the shares have been sold. | |
Name | Richard J. Rothberg | |
Title | General Counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 6, 2023 | |
Arrangement Duration | 178 days | |
Aggregate Available | 49,480 | 49,480 |
OVERVIEW AND BASIS OF PRESENT_2
OVERVIEW AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Aug. 04, 2023 | |
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 February 3, 2023. 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 the Company as of August 4, 2023 and February 3, 2023, the results of its operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and for the six months ended August 4, 2023 and July 29, 2022, and its cash flows for the six months ended August 4, 2023 and July 29, 2022. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of the Company’s operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and six months ended August 4, 2023 and July 29, 2022, and its cash flows for the six months ended August 4, 2023 and July 29, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period. The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended February 3, 2023 (“Fiscal 2023”) was a 53-week period while the fiscal year ending February 2, 2024 (“Fiscal 2024”) will be a 52-week period. |
Principles of Consolidation | Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies Inc. and its wholly-owned subsidiaries, and the accounts of SecureWorks Corp. (“Secureworks”), which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated. |
Variable Interest Entities | Variable Interest Entities — The Company 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 4 of the Notes to the Condensed Consolidated Financial Statements for more information regarding consolidated VIEs. |
Money Market Funds | Money Market Funds — The Company’s investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices in active markets for identical assets, when available, or pricing models whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The Company reviews security pricing and assesses money market fund liquidity on a quarterly basis. As of August 4, 2023, the Company’s portfolio had no material exposure to money market funds with a fluctuating net asset value. |
Marketable Equity and Other Securities | Marketable Equity and Other Securities — 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 7 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 instruments. For derivatives designated as fair value hedges, the Company assesses hedge effectiveness on qualifying instruments using the shortcut method whereby the hedges are considered perfectly effective at the onset of the hedge and over the life of the hedging relationship. |
Deferred Compensation Plans | Deferred Compensation Plans — The Company offers deferred compensation plans for eligible employees, which allow participants to defer a portion of their compensation. Assets were the same as liabilities associated with the plans at approximately $197 million and $179 million as of August 4, 2023 and February 3, 2023, 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 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of hierarchy for assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated: August 4, 2023 February 3, 2023 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 $ 4,568 $ — $ — $ 4,568 $ 4,301 $ — $ — $ 4,301 Marketable equity and other securities 5 — — 5 33 — — 33 Derivative instruments — 185 — 185 — 295 — 295 Total assets $ 4,573 $ 185 $ — $ 4,758 $ 4,334 $ 295 $ — $ 4,629 Liabilities: Derivative instruments $ — $ 76 $ — $ 76 $ — $ 460 $ — $ 460 Total liabilities $ — $ 76 $ — $ 76 $ — $ 460 $ — $ 460 |
Schedule of 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 6 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated: August 4, 2023 February 3, 2023 Carrying Value Fair Value Carrying Value Fair Value (in billions) Senior Notes $ 16.0 $ 15.8 $ 18.1 $ 18.2 Legacy Notes and Debentures $ 0.9 $ 1.0 $ 0.9 $ 1.0 DFS Debt $ 10.0 $ 9.6 $ 10.3 $ 9.9 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of carrying value of equity securities | The following table presents the cost, cumulative unrealized gains, cumulative unrealized losses, and carrying value of the Company's strategic investments in marketable and non-marketable equity securities as of the dates indicated: August 4, 2023 February 3, 2023 Cost Unrealized Gain Unrealized Loss Carrying Value Cost Unrealized Gain Unrealized Loss Carrying Value (in millions) Marketable $ 12 $ 19 $ (26) $ 5 $ 56 $ 17 $ (40) $ 33 Non-marketable 729 660 (146) 1,243 714 651 (100) 1,265 Total equity and other securities $ 741 $ 679 $ (172) $ 1,248 $ 770 $ 668 $ (140) $ 1,298 |
Schedule of gain (loss) on securities | The following table presents unrealized gains and losses on marketable and non-marketable equity and other securities for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Marketable securities: Unrealized gain $ 1 $ 7 $ 1 $ 7 Unrealized loss — (1) (23) (19) Net unrealized gain (loss) 1 6 (22) (12) Non-marketable securities: Unrealized gain — 51 9 72 Unrealized loss (41) (320) (46) (320) Net unrealized loss (a) (41) (269) (37) (248) Net unrealized loss on equity and other securities $ (40) $ (263) $ (59) $ (260) ____________________ |
Schedule of fixed income debt securities | The following table summarizes the Company’s debt securities as of the dates indicated: August 4, 2023 February 3, 2023 Cost Unrealized Gain Unrealized Loss Carrying Value Cost Unrealized Gain Unrealized Loss Carrying Value (in millions) Fixed income debt securities $ 339 $ 55 $ (85) $ 309 $ 348 $ 65 $ (95) $ 318 |
FINANCIAL SERVICES (Tables)
FINANCIAL SERVICES (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Receivables [Abstract] | |
Schedule of 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: August 4, 2023 February 3, 2023 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross (a) (b) $ 180 $ 10,439 $ 10,619 $ 685 $ 10,293 $ 10,978 Allowances for losses (9) (140) (149) (88) (113) (201) Customer receivables, net 171 10,299 10,470 597 10,180 10,777 Residual interest — 150 150 — 142 142 Financing receivables, net $ 171 $ 10,449 $ 10,620 $ 597 $ 10,322 $ 10,919 Short-term $ 171 $ 4,636 $ 4,807 $ 597 $ 4,684 $ 5,281 Long-term $ — $ 5,813 $ 5,813 $ — $ 5,638 $ 5,638 ____________________ (a) Customer receivables, gross include amounts due from customers under revolving loans, fixed-term loans, fixed-term leases, and accrued interest. (b) The decrease in revolving customer financing receivables is attributable to the reclassification of the U.S. consumer revolving portfolio to current assets held for sale, as described above. |
Schedule of allowance for financing receivable losses | The following table presents the changes in allowance for financing receivable losses for the periods indicated: Three Months Ended August 4, 2023 July 29, 2022 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 84 $ 135 $ 219 $ 94 $ 87 $ 181 Charge-offs, net of recoveries (16) (1) (17) (12) (2) (14) Provision charged to income statement 15 6 21 9 7 16 Held for sale adjustment (74) — (74) — — — Balances at end of period $ 9 $ 140 $ 149 $ 91 $ 92 $ 183 Six Months Ended August 4, 2023 July 29, 2022 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 88 $ 113 $ 201 $ 102 $ 87 $ 189 Charge-offs, net of recoveries (33) (2) (35) (25) (4) (29) Provision charged to income statement 28 29 57 14 9 23 Held for sale adjustment (74) — (74) — — — Balances at end of period $ 9 $ 140 $ 149 $ 91 $ 92 $ 183 |
Schedule of 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: August 4, 2023 February 3, 2023 Current Past Due Past Due Total Current Past Due Past Due Total (in millions) Revolving — DPA $ 7 $ — $ — $ 7 $ 457 $ 34 $ 17 $ 508 Revolving — DBC 151 18 4 173 154 19 4 177 Fixed-term — Consumer and Commercial 9,412 969 58 10,439 9,309 927 57 10,293 Total customer receivables, gross $ 9,570 $ 987 $ 62 $ 10,619 $ 9,920 $ 980 $ 78 $ 10,978 |
Schedule of credit quality indicators | The following tables present customer receivables, gross, including accrued interest, by credit quality indicator, segregated by class, as of the dates indicated: August 4, 2023 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2024 2023 2022 2021 2020 Years Prior Revolving — DPA Revolving — DBC Total (in millions) Higher $ 1,997 $ 2,453 $ 1,267 $ 617 $ 206 $ 10 $ 1 $ 45 $ 6,596 Mid 611 1,205 480 214 63 5 3 50 2,631 Lower 288 615 266 99 40 3 3 78 1,392 Total $ 2,896 $ 4,273 $ 2,013 $ 930 $ 309 $ 18 $ 7 $ 173 $ 10,619 February 3, 2023 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2023 2022 2021 2020 2019 Years Prior Revolving — DPA Revolving — DBC Total (in millions) Higher $ 3,210 $ 1,805 $ 914 $ 343 $ 37 $ 1 $ 123 $ 44 $ 6,477 Mid 1,242 631 362 119 17 1 136 54 2,562 Lower 1,017 364 157 65 7 1 249 79 1,939 Total $ 5,469 $ 2,800 $ 1,433 $ 527 $ 61 $ 3 $ 508 $ 177 $ 10,978 |
Schedule of finance leases | The following table presents 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Net revenue — products $ 292 $ 219 $ 539 $ 439 Cost of net revenue — products 192 164 388 368 Gross margin — products $ 100 $ 55 $ 151 $ 71 |
Schedule of 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 Statement of Financial Position as of the date indicated: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 1,445 Fiscal 2025 2,063 Fiscal 2026 1,540 Fiscal 2027 822 Fiscal 2028 and beyond 297 Total undiscounted cash flows 6,167 Fixed-term loans 5,163 Revolving loans 180 Less: Unearned income (891) Total customer receivables, gross $ 10,619 |
Schedule of operating lease | 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: August 4, 2023 February 3, 2023 (in millions) Equipment under operating lease, gross $ 3,833 $ 3,725 Less: Accumulated depreciation (1,687) (1,517) Equipment under operating lease, net $ 2,146 $ 2,208 |
Schedule of operating lease income and expense | 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Income related to lease payments $ 330 $ 253 $ 651 $ 485 Depreciation expense $ 236 $ 194 $ 469 $ 359 |
Schedule of 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: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 623 Fiscal 2025 918 Fiscal 2026 544 Fiscal 2027 192 Fiscal 2028 and beyond 71 Total $ 2,348 |
Schedule of debt | 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 and excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business: August 4, 2023 February 3, 2023 DFS debt (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 3,067 $ 3,987 Fixed-term securitization offerings 3,471 2,679 Other 58 76 Total DFS U.S. debt 6,596 6,742 DFS international debt: Securitization facility 793 790 Other borrowings 762 871 Note payable 250 250 Dell Bank senior unsecured eurobonds 1,642 1,637 Total DFS international debt 3,447 3,548 Total DFS debt $ 10,043 $ 10,290 Total short-term DFS debt $ 5,801 $ 5,400 Total long-term DFS debt $ 4,242 $ 4,890 The following table summarizes the Company’s outstanding debt as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Senior Notes: 5.45% due June 2023 $ — $ 1,000 4.00% due July 2024 1,000 1,000 5.85% due July 2025 1,000 1,000 6.02% due June 2026 3,500 4,500 4.90% due October 2026 1,750 1,750 6.10% due July 2027 500 500 5.25% due February 2028 1,000 1,000 5.30% due October 2029 1,750 1,750 6.20% due July 2030 750 750 5.75% due February 2033 1,000 1,000 8.10% due July 2036 1,000 1,000 3.38% due December 2041 982 1,000 8.35% due July 2046 800 800 3.45% due December 2051 1,099 1,250 Legacy Notes and Debentures: 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 264 264 DFS Debt (Note 4) 10,043 10,290 Other 262 325 Total debt, principal amount $ 27,388 $ 29,867 Unamortized discount, net of unamortized premium (119) (133) Debt issuance costs (131) (146) Total debt, carrying value $ 27,138 $ 29,588 Total short-term debt, carrying value $ 6,961 $ 6,573 Total long-term debt, carrying value $ 20,177 $ 23,015 |
Schedule of financing receivables held by the consolidated VIEs | The following table presents the assets and liabilities held by the consolidated VIEs as of the dates indicated, which are included in the Condensed Consolidated Statements of Financial Position: August 4, 2023 February 3, 2023 (in millions) Assets held by consolidated VIEs Other current assets $ 282 $ 274 Current assets held for sale $ 366 $ — Financing receivables, net of allowance Short-term $ 3,256 $ 3,702 Long-term $ 3,298 $ 3,295 Property, plant, and equipment, net $ 1,142 $ 1,164 Liabilities held by consolidated VIEs Debt, net of unamortized debt issuance costs Short-term $ 4,556 $ 4,761 Long-term $ 2,760 $ 2,685 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Leases [Abstract] | |
Schedule of 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Operating lease costs $ 63 $ 68 $ 142 $ 140 Variable costs 19 23 43 48 Total lease costs $ 82 $ 91 $ 185 $ 188 For both the six months ended August 4, 2023 and July 29, 2022, 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 August 4, 2023 February 3, 2023 (in millions, except for term and discount rate) Operating lease right-of-use assets Other non-current assets $ 716 $ 725 Current operating lease liabilities Accrued and other current liabilities $ 255 $ 260 Non-current operating lease liabilities Other non-current liabilities 600 630 Total operating lease liabilities $ 855 $ 890 Weighted-average remaining lease term (in years) 4.44 4.95 Weighted-average discount rate 4.12 % 3.48 % The following table presents supplemental cash flow information related to leases for the periods indicated: Six Months Ended August 4, 2023 July 29, 2022 (in millions) Cash paid for amounts included in the measurement of lease liabilities — $ 153 $ 156 Right-of-use assets obtained in exchange for new operating lease liabilities $ 131 $ 103 |
Schedule of maturity of operating lease liabilities | The following table presents the future maturity 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: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 131 Fiscal 2025 232 Fiscal 2026 182 Fiscal 2027 145 Fiscal 2028 104 Thereafter 140 Total lease payments 934 Less: Imputed interest (79) Total $ 855 Current operating lease liabilities $ 255 Non-current operating lease liabilities $ 600 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | 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 and excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business: August 4, 2023 February 3, 2023 DFS debt (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 3,067 $ 3,987 Fixed-term securitization offerings 3,471 2,679 Other 58 76 Total DFS U.S. debt 6,596 6,742 DFS international debt: Securitization facility 793 790 Other borrowings 762 871 Note payable 250 250 Dell Bank senior unsecured eurobonds 1,642 1,637 Total DFS international debt 3,447 3,548 Total DFS debt $ 10,043 $ 10,290 Total short-term DFS debt $ 5,801 $ 5,400 Total long-term DFS debt $ 4,242 $ 4,890 The following table summarizes the Company’s outstanding debt as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Senior Notes: 5.45% due June 2023 $ — $ 1,000 4.00% due July 2024 1,000 1,000 5.85% due July 2025 1,000 1,000 6.02% due June 2026 3,500 4,500 4.90% due October 2026 1,750 1,750 6.10% due July 2027 500 500 5.25% due February 2028 1,000 1,000 5.30% due October 2029 1,750 1,750 6.20% due July 2030 750 750 5.75% due February 2033 1,000 1,000 8.10% due July 2036 1,000 1,000 3.38% due December 2041 982 1,000 8.35% due July 2046 800 800 3.45% due December 2051 1,099 1,250 Legacy Notes and Debentures: 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 264 264 DFS Debt (Note 4) 10,043 10,290 Other 262 325 Total debt, principal amount $ 27,388 $ 29,867 Unamortized discount, net of unamortized premium (119) (133) Debt issuance costs (131) (146) Total debt, carrying value $ 27,138 $ 29,588 Total short-term debt, carrying value $ 6,961 $ 6,573 Total long-term debt, carrying value $ 20,177 $ 23,015 |
Schedule of aggregate future maturities | The following table presents the aggregate future maturities of the Company’s debt as of August 4, 2023 for the periods indicated: Maturities by Fiscal Year 2024 (remaining six months) 2025 2026 2027 2028 Thereafter Total (in millions) Senior Notes $ — $ 1,000 $ 1,000 $ 5,250 $ 500 $ 8,381 $ 16,131 Legacy Notes and Debentures — — — — — 952 952 DFS Debt 2,827 4,341 1,511 773 590 1 10,043 Other 100 122 27 8 5 — 262 Total maturities, principal amount 2,927 5,463 2,538 6,031 1,095 9,334 27,388 Associated carrying value adjustments (2) (7) (7) (36) (8) (190) (250) Total maturities, carrying value amount $ 2,925 $ 5,456 $ 2,531 $ 5,995 $ 1,087 $ 9,144 $ 27,138 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts of outstanding derivative instruments | The following table presents the notional amounts of outstanding derivative instruments as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 7,245 $ 7,746 Non-designated as hedging instruments 6,434 6,833 Total $ 13,679 $ 14,579 Interest rate contracts: Designated as fair value hedging instruments $ — $ 1,000 Non-designated as hedging instruments 6,395 7,214 Total $ 6,395 $ 8,214 |
Schedule of derivative instruments designated as hedging instruments | The following table presents the effect of derivative instruments designated as cash flow hedging instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income for the periods indicated: 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 August 4, 2023: Total net revenue $ (63) Foreign exchange contracts $ 49 Total cost of net revenue (5) Interest rate contracts — Interest and other, net — Total $ 49 Total $ (68) For the three months ended July 29, 2022: Total net revenue $ 307 Foreign exchange contracts $ 166 Total cost of net revenue (1) Interest rate contracts — Interest and other, net — Total $ 166 Total $ 306 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 six months ended August 4, 2023: Total net revenue $ (151) Foreign exchange contracts $ 59 Total cost of net revenue (8) Interest rate contracts — Interest and other, net — Total $ 59 Total $ (159) For the six months ended July 29, 2022: Total net revenue $ 430 Foreign exchange contracts $ 538 Total cost of net revenue (28) Interest rate contracts — Interest and other, net — Total $ 538 Total $ 402 |
Schedule of derivative instruments not designated as hedging instruments | The following table presents the effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 Location of Gain (Loss) Recognized (in millions) Foreign exchange contracts $ (40) $ (74) $ 17 $ (305) Interest and other, net Interest rate contracts 24 1 3 18 Interest and other, net Total $ (16) $ (73) $ 20 $ (287) |
Schedule of 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: August 4, 2023 Other Current Other Non-Current Assets Other Current Liabilities Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 114 $ — $ 5 $ — $ 119 Foreign exchange contracts in a liability position (18) — (4) — (22) Interest rate contracts in an asset position — — — — — Interest rate contracts in a liability position — — — — — Net asset (liability) 96 — 1 — 97 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 163 1 29 — 193 Foreign exchange contracts in a liability position (149) — (68) — (217) Interest rate contracts in an asset position 6 68 — — 74 Interest rate contracts in a liability position — — (21) (17) (38) Net asset (liability) 20 69 (60) (17) 12 Total derivatives at fair value $ 116 $ 69 $ (59) $ (17) $ 109 February 3, 2023 Other Current Other Non-Current Assets Other Current Liabilities Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 7 $ — $ 30 $ — $ 37 Foreign exchange contracts in a liability position (21) — (142) — (163) Interest rate contracts in an asset position — — — — — Interest rate contracts in a liability position — — — (6) (6) Net asset (14) — (112) (6) (132) Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 282 1 368 — 651 Foreign exchange contracts in a liability position (121) — (614) (1) (736) Interest rate contracts in an asset position 14 133 — — 147 Interest rate contracts in a liability position — — — (95) (95) Net asset (liability) 175 134 (246) (96) (33) Total derivatives at fair value $ 161 $ 134 $ (358) $ (102) $ (165) |
Schedule of gross amounts of derivative instruments | 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: August 4, 2023 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 $ 386 $ (201) $ 185 $ — $ (43) $ 142 Financial liabilities (277) 201 (76) — 17 (59) Total derivative instruments $ 109 $ — $ 109 $ — $ (26) $ 83 February 3, 2023 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 $ 835 $ (540) $ 295 $ — $ — $ 295 Financial liabilities (1,000) 540 (460) — 25 (435) Total derivative instruments $ (165) $ — $ (165) $ — $ 25 $ (140) |
Schedule of offsetting amounts | 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: August 4, 2023 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 $ 386 $ (201) $ 185 $ — $ (43) $ 142 Financial liabilities (277) 201 (76) — 17 (59) Total derivative instruments $ 109 $ — $ 109 $ — $ (26) $ 83 February 3, 2023 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 $ 835 $ (540) $ 295 $ — $ — $ 295 Financial liabilities (1,000) 540 (460) — 25 (435) Total derivative instruments $ (165) $ — $ (165) $ — $ 25 $ (140) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
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 Other Businesses Total (in millions) Balances as of February 3, 2023 $ 15,017 $ 4,232 $ 427 $ 19,676 Impact of foreign currency translation and other (36) — — (36) Balances as of August 4, 2023 $ 14,981 $ 4,232 $ 427 $ 19,640 |
Schedule of definite-lived intangible assets | The following table presents the Company’s intangible assets as of the dates indicated: August 4, 2023 February 3, 2023 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 16,956 $ (14,703) $ 2,253 $ 16,956 $ (14,474) $ 2,482 Developed technology 9,466 (8,817) 649 9,466 (8,660) 806 Trade names 875 (802) 73 875 (780) 95 Definite-lived intangible assets 27,297 (24,322) 2,975 27,297 (23,914) 3,383 Indefinite-lived trade names 3,085 — 3,085 3,085 — 3,085 Total intangible assets $ 30,382 $ (24,322) $ 6,060 $ 30,382 $ (23,914) $ 6,468 |
Schedule of indefinite-lived intangible assets | The following table presents the Company’s intangible assets as of the dates indicated: August 4, 2023 February 3, 2023 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 16,956 $ (14,703) $ 2,253 $ 16,956 $ (14,474) $ 2,482 Developed technology 9,466 (8,817) 649 9,466 (8,660) 806 Trade names 875 (802) 73 875 (780) 95 Definite-lived intangible assets 27,297 (24,322) 2,975 27,297 (23,914) 3,383 Indefinite-lived trade names 3,085 — 3,085 3,085 — 3,085 Total intangible assets $ 30,382 $ (24,322) $ 6,060 $ 30,382 $ (23,914) $ 6,468 |
Schedule of 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: August 4, 2023 (in millions) Fiscal 2024 (remaining six months) $ 408 Fiscal 2025 644 Fiscal 2026 484 Fiscal 2027 376 Fiscal 2028 220 Thereafter 843 Total $ 2,975 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of changes in deferred revenue | The following table presents the changes in the Company’s deferred revenue for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Deferred revenue: Deferred revenue at beginning of period $ 29,695 $ 27,403 $ 30,286 $ 27,573 Revenue deferrals 6,025 5,572 10,744 10,547 Revenue recognized (5,408) (4,950) (10,718) (9,930) Other (a) — — — (165) Deferred revenue at end of period $ 30,312 $ 28,025 $ 30,312 $ 28,025 Short-term deferred revenue $ 16,174 $ 14,724 $ 16,174 $ 14,724 Long-term deferred revenue $ 14,138 $ 13,301 $ 14,138 $ 13,301 ____________________ (a) For the six months ended July 29, 2022, Other represents the reclassification of deferred revenue to accrued and other liabilities. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Equity [Abstract] | |
Schedule of 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 February 3, 2023 $ (747) $ (222) $ (32) $ (1,001) Other comprehensive income before reclassifications 25 59 1 85 Amounts reclassified from accumulated other comprehensive income (loss) — 159 — 159 Total change for the period 25 218 1 244 Balances as of August 4, 2023 $ (722) $ (4) $ (31) $ (757) |
Schedule of 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 Cash Flow Hedges (in millions) Total reclassifications, net of tax: Net revenue $ (63) $ 307 $ (151) $ 430 Cost of net revenue (5) (1) (8) (28) Total reclassifications, net of tax $ (68) $ 306 $ (159) $ 402 |
CAPITALIZATION (Tables)
CAPITALIZATION (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Equity [Abstract] | |
Schedule of stock by class | 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 August 4, 2023 Class A 600 379 379 Class B 200 91 91 Class C 7,900 347 254 Class D 100 — — 8,800 817 724 Common stock as of February 3, 2023 Class A 600 379 379 Class B 200 95 95 Class C 7,900 324 242 Class D 100 — — 8,800 798 716 |
Schedule of dividends declared | The Company paid the following dividends during the periods presented: Three Months Ended Declaration Date Record Date Payment Date Dividend per Share Amount ( in millions ) Fiscal 2024 May 5, 2023 March 2, 2023 April 25, 2023 May 5, 2023 $ 0.37 $ 270 August 4, 2023 June 16, 2023 July 25, 2023 August 4, 2023 $ 0.37 $ 268 Fiscal 2023 April 29, 2022 February 24, 2022 April 20, 2022 April 29, 2022 $ 0.33 $ 248 July 29, 2022 June 7, 2022 July 20, 2022 July 29, 2022 $ 0.33 $ 242 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share and reconciliation to consolidated net income | The following table presents basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 Earnings per share attributable to Dell Technologies Inc. Dell Technologies Common Stock — Basic $ 0.64 $ 0.69 $ 1.44 $ 2.12 Dell Technologies Common Stock — Diluted $ 0.63 $ 0.68 $ 1.42 $ 2.06 The following table presents the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Numerator: Dell Technologies Common Stock Net income attributable to Dell Technologies Inc. - basic and diluted $ 462 $ 511 $ 1,045 $ 1,583 Denominator: Dell Technologies Common Stock weighted-average shares outstanding Weighted-average shares outstanding — basic 726 739 725 746 Dilutive effect of options, restricted stock units, restricted stock, and other 12 16 12 22 Weighted-average shares outstanding — diluted 738 755 737 768 Weighted-average shares outstanding — antidilutive — 15 8 8 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended Six Months Ended Classification August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Sales and leases of products to VMware Net revenue - products $ 38 $ 35 $ 78 $ 81 Purchase of VMware products for resale Cost of net revenue - products $ 384 $ 426 $ 591 $ 681 Purchase of VMware services for resale Cost of net revenue - services $ 880 $ 762 $ 1,756 $ 1,471 The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Financial Position as of the dates indicated: Classification August 4, 2023 February 3, 2023 (in millions) Deferred costs related to VMware products and services for resale Other current assets $ 2,898 $ 3,000 Deferred costs related to VMware products and services for resale Other non-current assets $ 2,277 $ 2,537 The following table presents amounts due to and from VMware as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Due from related party, net, current (a) $ 404 $ 378 Due from related party, net, non-current (b) $ 236 $ 440 Due to related party, current (c) $ 1,252 $ 2,067 ____________________ (a) Amounts due from related party, net, current consists of amounts due from VMware, inclusive of current net tax receivables from VMware under the Tax Agreements described below. Amounts, excluding tax, are generally settled in cash within 60 days of each quarter-end. (b) Amounts due from related party, net, non-current consists of the non-current portion of net receivables from VMware under the Tax Agreements. (c) Amounts due to related party, current includes amounts due to VMware, which are generally settled in cash within 60 days of each quarter-end. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of revenue from segments to consolidated net revenue | 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 segment operating income to the Company’s consolidated operating income for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Consolidated net revenue: Infrastructure Solutions Group $ 8,461 $ 9,536 $ 16,054 $ 18,821 Client Solutions Group 12,942 15,490 24,925 31,077 Reportable segment net revenue 21,403 25,026 40,979 49,898 Other businesses (a) 1,528 1,399 2,871 2,638 Unallocated transactions (b) 3 — 6 5 Total consolidated net revenue $ 22,934 $ 26,425 $ 43,856 $ 52,541 Consolidated operating income: Infrastructure Solutions Group $ 1,049 $ 1,046 $ 1,789 $ 2,128 Client Solutions Group 969 978 1,861 2,093 Reportable segment operating income 2,018 2,024 3,650 4,221 Other businesses (a) (44) (71) (80) (135) Unallocated transactions (b) 3 (1) 5 1 Impact of purchase accounting (c) (4) (3) (8) (12) Amortization of intangibles (209) (244) (408) (487) Transaction-related expenses (d) (3) (3) (6) (8) Stock-based compensation expense (e) (223) (236) (448) (468) Other corporate expenses (f) (373) (196) (471) (292) Total consolidated operating income $ 1,165 $ 1,270 $ 2,234 $ 2,820 ____________________ (a) Other businesses consists of (i) VMware Resale, (ii) Secureworks, and (iii) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively. (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 that was completed in September 2016. (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. |
Schedule of disaggregation of net 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Net revenue: Infrastructure Solutions Group: Servers and networking $ 4,274 $ 5,209 $ 8,111 $ 10,257 Storage 4,187 4,327 7,943 8,564 Total ISG net revenue $ 8,461 $ 9,536 $ 16,054 $ 18,821 Client Solutions Group: Commercial $ 10,554 $ 12,141 $ 20,416 $ 24,112 Consumer 2,388 3,349 4,509 6,965 Total CSG net revenue $ 12,942 $ 15,490 $ 24,925 $ 31,077 |
SUPPLEMENTAL CONSOLIDATED FIN_2
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of information on selected assets | The following table presents additional information on selected assets included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: August 4, 2023 February 3, 2023 (in millions) Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 8,364 $ 8,607 Restricted cash - other current assets (a) 281 272 Restricted cash - other non-current assets (a) 5 15 Total cash, cash equivalents, and restricted cash $ 8,650 $ 8,894 Inventories: Production materials $ 2,197 $ 3,225 Work-in-process 604 708 Finished goods 783 843 Total inventories $ 3,584 $ 4,776 Deferred Costs: Total deferred costs, current (b) $ 5,837 $ 5,459 Property, plant, and equipment, net: Computer equipment $ 7,385 $ 6,899 Land and buildings 2,936 3,059 Machinery and other equipment 3,227 3,134 Total property, plant, and equipment 13,548 13,092 Accumulated depreciation and amortization (7,296) (6,883) Total property, plant, and equipment, net $ 6,252 $ 6,209 ____________________ (a) Restricted cash includes cash required to be held in escrow pursuant to DFS securitization arrangements. (b) Deferred costs are included in other current assets in the Condensed Consolidated Statements of Financial Position. Amounts classified as long-term deferred costs are included in other non-current assets and are not disclosed above. |
Schedule of 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Warranty liability: Warranty liability at beginning of period $ 438 $ 468 $ 467 $ 480 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) 202 244 398 467 Service obligations honored (201) (249) (426) (484) Warranty liability at end of period $ 439 $ 463 $ 439 $ 463 ____________________ |
Schedule of 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 Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Severance liability: Severance liability at beginning of period $ 162 $ 63 $ 408 $ 74 Severance charges 364 46 412 63 Cash paid and other (69) (21) (363) (49) Severance liability at end of period $ 457 $ 88 $ 457 $ 88 |
Schedule of severance charges | The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Severance charges: Cost of net revenue $ 27 $ (2) $ 48 $ 1 Selling, general, and administrative 324 46 350 57 Research and development 13 2 14 5 Total severance charges $ 364 $ 46 $ 412 $ 63 |
Schedule of interest and other, net | The following table presents information regarding interest and other, net for the periods indicated: Three Months Ended Six Months Ended August 4, 2023 July 29, 2022 August 4, 2023 July 29, 2022 (in millions) Interest and other, net: Investment income, primarily interest $ 66 $ 16 $ 125 $ 31 Loss on investments, net (29) (255) (44) (241) Interest expense (352) (298) (757) (563) Foreign exchange (65) (66) (97) (155) Other (71) (32) (42) (44) Total interest and other, net $ (451) $ (635) $ (815) $ (972) |
OVERVIEW AND BASIS OF PRESENT_3
OVERVIEW AND BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Millions | Aug. 04, 2023 | May 05, 2023 | Feb. 03, 2023 | Jul. 29, 2022 | Apr. 29, 2022 | Jan. 28, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total stockholders’ equity (deficit) | $ (2,677) | $ (2,924) | $ (3,025) | $ (2,755) | $ (2,355) | $ (1,580) |
Reclassified to current assets held for sale | 389 | |||||
Non-Controlling Interests | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total stockholders’ equity (deficit) | $ 95 | $ 99 | $ 97 | $ 105 | $ 107 | $ 105 |
SecureWorks | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Outstanding equity interest held (as a percent) | 81.20% | 82.60% | ||||
SecureWorks | Non-Controlling Interests | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total stockholders’ equity (deficit) | $ 95 | $ 97 |
FAIR VALUE MEASUREMENTS - Hiera
FAIR VALUE MEASUREMENTS - Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Assets: | ||
Marketable equity and other securities | $ 5 | $ 33 |
Derivative instruments | 185 | 295 |
Total assets | 4,758 | 4,629 |
Liabilities: | ||
Derivative instruments | 76 | 460 |
Total liabilities | 76 | 460 |
Level 1 | ||
Assets: | ||
Marketable equity and other securities | 5 | 33 |
Derivative instruments | 0 | 0 |
Total assets | 4,573 | 4,334 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Marketable equity and other securities | 0 | 0 |
Derivative instruments | 185 | 295 |
Total assets | 185 | 295 |
Liabilities: | ||
Derivative instruments | 76 | 460 |
Total liabilities | 76 | 460 |
Level 3 | ||
Assets: | ||
Marketable equity and other securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Money market funds | ||
Assets: | ||
Money market funds | 4,568 | 4,301 |
Money market funds | Level 1 | ||
Assets: | ||
Money market funds | 4,568 | 4,301 |
Money market funds | Level 2 | ||
Assets: | ||
Money market funds | 0 | 0 |
Money market funds | Level 3 | ||
Assets: | ||
Money market funds | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Deferred compensation plan assets | $ 197 | $ 179 |
Strategic Investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying Value | $ 1,200 | $ 1,300 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Value and Estimated Fair Value of Outstanding Debt (Details) - USD ($) $ in Billions | Aug. 04, 2023 | Feb. 03, 2023 |
Carrying Value | Senior Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | $ 16 | $ 18.1 |
Carrying Value | Legacy Notes and Debentures | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 0.9 | 0.9 |
Carrying Value | DFS Debt | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 10 | 10.3 |
Fair Value | Senior Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 15.8 | 18.2 |
Fair Value | Legacy Notes and Debentures | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 1 | 1 |
Fair Value | DFS Debt | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | $ 9.6 | $ 9.9 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Investments | $ 1,600 | $ 1,600 |
Fixed income debt securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Mature within one year | 226 | |
Mature in two to five years | $ 83 |
INVESTMENTS - Carrying Value of
INVESTMENTS - Carrying Value of Equity Securities (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Marketable | ||
Cost | $ 12 | $ 56 |
Unrealized Gain | 19 | 17 |
Unrealized Loss | (26) | (40) |
Carrying Value | 5 | 33 |
Non-marketable | ||
Cost | 729 | 714 |
Unrealized Gain | 660 | 651 |
Unrealized Loss | (146) | (100) |
Carrying Value | 1,243 | 1,265 |
Total equity and other securities | ||
Cost | 741 | 770 |
Unrealized Gain | 679 | 668 |
Unrealized Loss | (172) | (140) |
Carrying Value | $ 1,248 | $ 1,298 |
INVESTMENTS - Gains and losses
INVESTMENTS - Gains and losses on equity securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Marketable securities: | ||||
Unrealized gain | $ 1 | $ 7 | $ 1 | $ 7 |
Unrealized loss | 0 | (1) | (23) | (19) |
Net unrealized gain (loss) | 1 | 6 | (22) | (12) |
Non-marketable securities: | ||||
Unrealized gain | 0 | 51 | 9 | 72 |
Unrealized loss | (41) | (320) | (46) | (320) |
Net unrealized loss | (41) | (269) | (37) | (248) |
Net unrealized loss on equity and other securities | $ (40) | (263) | $ (59) | (260) |
Impairments on equity and other securities | $ 310 | $ 310 |
INVESTMENTS - Fixed Income Debt
INVESTMENTS - Fixed Income Debt Securities (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Unrealized Gain | $ 660 | $ 651 |
Unrealized Loss | (146) | (100) |
Carrying Value | 1,243 | 1,265 |
Fixed income debt securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Cost | 339 | 348 |
Unrealized Gain | 55 | 65 |
Unrealized Loss | (85) | (95) |
Carrying Value | $ 309 | $ 318 |
FINANCIAL SERVICES - Narrative
FINANCIAL SERVICES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
New financing originations | $ 2,400 | $ 2,300 | $ 4,200 | $ 4,400 | |
Reclassified to current assets held for sale | $ 389 | ||||
Revolving | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repayment term (in years) | 12 months | ||||
Fixed-term | Minimum | Business customers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repayment term (in years) | 2 years | ||||
Fixed-term | Minimum | Qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repayment term (in years) | 3 years | ||||
Fixed-term | Maximum | Business customers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repayment term (in years) | 4 years | ||||
Fixed-term | Maximum | Qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repayment term (in years) | 5 years |
FINANCIAL SERVICES - Schedule o
FINANCIAL SERVICES - Schedule of Components of the Company's Financing Receivables Segregated by Portfolio Segment (Details) - USD ($) $ in Millions | Aug. 04, 2023 | May 05, 2023 | Feb. 03, 2023 | Jul. 29, 2022 | Apr. 29, 2022 | Jan. 28, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | $ 10,619 | $ 10,978 | ||||
Financing receivables, net | 10,620 | 10,919 | ||||
Short-term | 4,807 | 5,281 | ||||
Long-term | 5,813 | 5,638 | ||||
Customer financing receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 10,619 | 10,978 | ||||
Allowances for losses | (149) | $ (219) | (201) | $ (183) | $ (181) | $ (189) |
Financing receivables, net | 10,470 | 10,777 | ||||
Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 150 | 142 | ||||
Revolving | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 171 | 597 | ||||
Short-term | 171 | 597 | ||||
Long-term | 0 | 0 | ||||
Revolving | Customer financing receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 180 | 685 | ||||
Allowances for losses | (9) | (84) | (88) | (91) | (94) | (102) |
Financing receivables, net | 171 | 597 | ||||
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 | 10,449 | 10,322 | ||||
Short-term | 4,636 | 4,684 | ||||
Long-term | 5,813 | 5,638 | ||||
Fixed-term | Customer financing receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 10,439 | 10,293 | ||||
Allowances for losses | (140) | $ (135) | (113) | $ (92) | $ (87) | $ (87) |
Financing receivables, net | 10,299 | 10,180 | ||||
Fixed-term | Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | $ 150 | $ 142 |
FINANCIAL SERVICES - Schedule_2
FINANCIAL SERVICES - Schedule of Changes in the Allowance for Financing Receivable Losses (Details) - Customer financing receivables - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balances at beginning of period | $ 219 | $ 181 | $ 201 | $ 189 |
Charge-offs, net of recoveries | (17) | (14) | (35) | (29) |
Provision charged to income statement | 21 | 16 | 57 | 23 |
Held for sale adjustment | (74) | 0 | (74) | 0 |
Balances at end of period | 149 | 183 | 149 | 183 |
Revolving | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balances at beginning of period | 84 | 94 | 88 | 102 |
Charge-offs, net of recoveries | (16) | (12) | (33) | (25) |
Provision charged to income statement | 15 | 9 | 28 | 14 |
Held for sale adjustment | (74) | 0 | (74) | 0 |
Balances at end of period | 9 | 91 | 9 | 91 |
Fixed-term | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balances at beginning of period | 135 | 87 | 113 | 87 |
Charge-offs, net of recoveries | (1) | (2) | (2) | (4) |
Provision charged to income statement | 6 | 7 | 29 | 9 |
Held for sale adjustment | 0 | 0 | 0 | 0 |
Balances at end of period | $ 140 | $ 92 | $ 140 | $ 92 |
FINANCIAL SERVICES - Aging Cust
FINANCIAL SERVICES - Aging Customer Financing Receivables, Gross, Including Accrued Interest (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | $ 10,619 | $ 10,978 |
Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 10,619 | 10,978 |
Revolving | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 180 | 685 |
Revolving | Revolving — DPA | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 7 | 508 |
Revolving | Revolving — DBC | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 173 | 177 |
Fixed-term | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 10,439 | 10,293 |
Fixed-term | Fixed-term — Consumer and Commercial | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 10,439 | 10,293 |
Current | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,570 | 9,920 |
Current | Revolving | Revolving — DPA | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 7 | 457 |
Current | Revolving | Revolving — DBC | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 151 | 154 |
Current | Fixed-term | Fixed-term — Consumer and Commercial | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,412 | 9,309 |
Past Due 1 — 90 Days | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 987 | 980 |
Past Due 1 — 90 Days | Revolving | Revolving — DPA | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 0 | 34 |
Past Due 1 — 90 Days | Revolving | Revolving — DBC | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 18 | 19 |
Past Due 1 — 90 Days | Fixed-term | Fixed-term — Consumer and Commercial | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 969 | 927 |
Past Due >90 Days | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 62 | 78 |
Past Due >90 Days | Revolving | Revolving — DPA | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 0 | 17 |
Past Due >90 Days | Revolving | Revolving — DBC | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 4 | 4 |
Past Due >90 Days | Fixed-term | Fixed-term — Consumer and Commercial | Customer financing receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | $ 58 | $ 57 |
FINANCIAL SERVICES - Credit Qua
FINANCIAL SERVICES - Credit Quality Indicators (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total customer receivables, gross | $ 10,619 | $ 10,978 |
Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,896 | 5,469 |
Fiscal year before current fiscal year | 4,273 | 2,800 |
Two years before current fiscal year | 2,013 | 1,433 |
Three years before current fiscal year | 930 | 527 |
Four years before current fiscal year | 309 | 61 |
Years Prior | 18 | 3 |
Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 7 | 508 |
Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 173 | 177 |
Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total customer receivables, gross | 6,596 | 6,477 |
Higher | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,997 | 3,210 |
Fiscal year before current fiscal year | 2,453 | 1,805 |
Two years before current fiscal year | 1,267 | 914 |
Three years before current fiscal year | 617 | 343 |
Four years before current fiscal year | 206 | 37 |
Years Prior | 10 | 1 |
Higher | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 1 | 123 |
Higher | Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 45 | 44 |
Mid | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total customer receivables, gross | 2,631 | 2,562 |
Mid | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 611 | 1,242 |
Fiscal year before current fiscal year | 1,205 | 631 |
Two years before current fiscal year | 480 | 362 |
Three years before current fiscal year | 214 | 119 |
Four years before current fiscal year | 63 | 17 |
Years Prior | 5 | 1 |
Mid | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 3 | 136 |
Mid | Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 50 | 54 |
Lower | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total customer receivables, gross | 1,392 | 1,939 |
Lower | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 288 | 1,017 |
Fiscal year before current fiscal year | 615 | 364 |
Two years before current fiscal year | 266 | 157 |
Three years before current fiscal year | 99 | 65 |
Four years before current fiscal year | 40 | 7 |
Years Prior | 3 | 1 |
Lower | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 3 | 249 |
Lower | Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | $ 78 | $ 79 |
FINANCIAL SERVICES - Finance Le
FINANCIAL SERVICES - Finance Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Receivables [Abstract] | ||||
Net revenue — products | $ 292 | $ 219 | $ 539 | $ 439 |
Cost of net revenue — products | 192 | 164 | 388 | 368 |
Gross margin — products | $ 100 | $ 55 | $ 151 | $ 71 |
FINANCIAL SERVICES - Finance _2
FINANCIAL SERVICES - Finance Leases Future Maturity (Details) $ in Millions | Aug. 04, 2023 USD ($) |
Lessor, Lease, Description [Line Items] | |
Fiscal 2024 (remaining six months) | $ 1,445 |
Fiscal 2025 | 2,063 |
Fiscal 2026 | 1,540 |
Fiscal 2027 | 822 |
Fiscal 2028 and beyond | 297 |
Total undiscounted cash flows | 6,167 |
Total customer receivables, gross | 10,619 |
Less: Unearned income | (891) |
Fixed-term loans | |
Lessor, Lease, Description [Line Items] | |
Total customer receivables, gross | 5,163 |
Revolving loans | |
Lessor, Lease, Description [Line Items] | |
Total customer receivables, gross | $ 180 |
FINANCIAL SERVICES - Operating
FINANCIAL SERVICES - Operating Leases (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Receivables [Abstract] | ||
Equipment under operating lease, gross | $ 3,833 | $ 3,725 |
Less: Accumulated depreciation | (1,687) | (1,517) |
Equipment under operating lease, net | $ 2,146 | $ 2,208 |
FINANCIAL SERVICES - Operatin_2
FINANCIAL SERVICES - Operating Lease Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Receivables [Abstract] | ||||
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Total net revenue | Total net revenue | Total net revenue | Total net revenue |
Income related to lease payments | $ 330 | $ 253 | $ 651 | $ 485 |
Depreciation expense | $ 236 | $ 194 | $ 469 | $ 359 |
FINANCIAL SERVICES - Future Mat
FINANCIAL SERVICES - Future Maturities (Details) $ in Millions | Aug. 04, 2023 USD ($) |
Operating Leases | |
Fiscal 2024 (remaining six months) | $ 623 |
Fiscal 2025 | 918 |
Fiscal 2026 | 544 |
Fiscal 2027 | 192 |
Fiscal 2028 and beyond | 71 |
Total | $ 2,348 |
FINANCIAL SERVICES - DFS Debt (
FINANCIAL SERVICES - DFS Debt (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | $ 27,138 | $ 29,588 |
Total DFS debt | 27,388 | 29,867 |
Total short-term DFS debt | 6,961 | 6,573 |
Total long-term DFS debt | 20,177 | 23,015 |
Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 6,596 | 6,742 |
Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 3,447 | 3,548 |
Asset-based financing and securitization facilities | Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 3,067 | 3,987 |
Asset-based financing and securitization facilities | Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 793 | 790 |
Fixed-term securitization offerings | Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 3,471 | 2,679 |
Other borrowings | Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 58 | 76 |
Other borrowings | Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 762 | 871 |
Note payable | Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 250 | 250 |
Dell Bank senior unsecured eurobonds | Unsecured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 1,642 | 1,637 |
DFS Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS debt | 10,043 | |
DFS Debt | Secured Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS debt | 10,043 | 10,290 |
Total short-term DFS debt | 5,801 | 5,400 |
Total long-term DFS debt | $ 4,242 | $ 4,890 |
FINANCIAL SERVICES - DFS Debt N
FINANCIAL SERVICES - DFS Debt Narrative (Details) $ in Millions | 6 Months Ended | |||
Oct. 18, 2022 EUR (€) | Oct. 27, 2021 EUR (€) | Jun. 24, 2020 EUR (€) | Aug. 04, 2023 USD ($) facility | |
U.S. | ||||
Debt Instrument [Line Items] | ||||
Number of asset-based financing facilities | facility | 2 | |||
Note payable | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 250 | |||
Note payable | Mexican Interbank Equilibrium Interest Rate | Mexico, Pesos | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 4.24% | |||
Secured Debt | Asset-based financing and securitization facilities | U.S. | Finance Leases and Revolving Loan Portfolio Segments | ||||
Debt Instrument [Line Items] | ||||
Total debt capacity | $ 5,600 | |||
Secured Debt | Asset-based financing and securitization facilities | International | Finance Leases and Revolving Loan Portfolio Segments | ||||
Debt Instrument [Line Items] | ||||
Total debt capacity | $ 876 | |||
Secured Debt | Fixed-term securitization offerings | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.43% | |||
Secured Debt | Fixed-term securitization offerings | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.80% | |||
Secured Debt | Other borrowings | Canada | ||||
Debt Instrument [Line Items] | ||||
Total debt capacity | $ 337 | |||
Secured Debt | Other borrowings | Europe | ||||
Debt Instrument [Line Items] | ||||
Total debt capacity | 657 | |||
Secured Debt | Other borrowings | Australia and New Zealand | ||||
Debt Instrument [Line Items] | ||||
Total debt capacity | 295 | |||
Secured Debt | Other borrowings | Middle East | ||||
Debt Instrument [Line Items] | ||||
Total debt capacity | $ 150 | |||
Unsecured Debt | Dell Bank senior unsecured eurobonds | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.50% | 0.50% | 1.625% | |
Aggregate principal amount | € | € 500,000,000 | € 500,000,000 | € 500,000,000 | |
Debt instrument, term | 5 years | 5 years | 4 years |
FINANCIAL SERVICES - Schedule_3
FINANCIAL SERVICES - Schedule of Financing Receivables Held by the Consolidated VIEs (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held by consolidated VIEs | $ 85,658 | $ 89,611 |
Liabilities held by consolidated VIEs | 88,335 | 92,636 |
Other current assets | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held by consolidated VIEs | 282 | 274 |
Current assets held for sale | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held by consolidated VIEs | 366 | 0 |
Short-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held by consolidated VIEs | 3,256 | 3,702 |
Long-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held by consolidated VIEs | 3,298 | 3,295 |
Property, plant, and equipment, net | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held by consolidated VIEs | 1,142 | 1,164 |
Short-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities held by consolidated VIEs | 4,556 | 4,761 |
Long-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities held by consolidated VIEs | $ 2,760 | $ 2,685 |
FINANCIAL SERVICES - Variable I
FINANCIAL SERVICES - Variable Interest Entities Narrative (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Variable Interest Entity, Primary Beneficiary | ||||
Debt Instrument [Line Items] | ||||
Financing receivables transferred via securitization through SPEs | $ 1.1 | $ 1.2 | $ 2.6 | $ 2.9 |
FINANCIAL SERVICES - Customer R
FINANCIAL SERVICES - Customer Receivables Sales Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2023 | Jul. 29, 2022 | |
Receivables [Abstract] | ||
Financing receivables sold | $ 187 | $ 425 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Aug. 04, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 10 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Operating lease expense: | ||||
Operating lease costs | $ 63 | $ 68 | $ 142 | $ 140 |
Variable costs | 19 | 23 | 43 | 48 |
Total lease costs | $ 82 | $ 91 | $ 185 | $ 188 |
LEASES - Supplemental Informati
LEASES - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 716 | $ 725 |
Operating lease ROU assets extensible list | Other non-current assets | Other non-current assets |
Current operating lease liabilities | $ 255 | $ 260 |
Current operating lease liabilities, extensible list | Accrued and other | Accrued and other |
Non-current operating lease liabilities | $ 600 | $ 630 |
Non-current operating lease liabilities, extensible list | Other non-current liabilities | Other non-current liabilities |
Total operating lease liabilities | $ 855 | $ 890 |
Weighted-average remaining lease term (in years) | 4 years 5 months 8 days | 4 years 11 months 12 days |
Weighted-average discount rate | 4.12% | 3.48% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2023 | Jul. 29, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases | $ 153 | $ 156 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 131 | $ 103 |
LEASES - Maturity of Operating
LEASES - Maturity of Operating Leases (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Lessee, Operating Lease, Liability, Payment, Due | ||
Fiscal 2024 (remaining six months) | $ 131 | |
Fiscal 2025 | 232 | |
Fiscal 2026 | 182 | |
Fiscal 2027 | 145 | |
Fiscal 2028 | 104 | |
Thereafter | 140 | |
Total lease payments | 934 | |
Less: Imputed interest | (79) | |
Total | 855 | $ 890 |
Current operating lease liabilities | 255 | 260 |
Non-current operating lease liabilities | $ 600 | $ 630 |
DEBT - Outstanding Debt (Detail
DEBT - Outstanding Debt (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Debt Instrument [Line Items] | ||
Total debt, principal amount | $ 27,388 | $ 29,867 |
Unamortized discount, net of unamortized premium | (119) | (133) |
Debt issuance costs | (131) | (146) |
Total debt, carrying value | 27,138 | 29,588 |
Total short-term debt, carrying value | 6,961 | 6,573 |
Total long-term debt, carrying value | 20,177 | 23,015 |
DFS Debt | ||
Debt Instrument [Line Items] | ||
Total debt, principal amount | $ 10,043 | |
Unsecured Debt | 5.45% due June 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.45% | |
Total debt, principal amount | $ 0 | 1,000 |
Unsecured Debt | 4.00% due July 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4% | |
Total debt, principal amount | $ 1,000 | 1,000 |
Unsecured Debt | 5.85% due July 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.85% | |
Total debt, principal amount | $ 1,000 | 1,000 |
Unsecured Debt | 6.02% due June 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.02% | |
Total debt, principal amount | $ 3,500 | 4,500 |
Unsecured Debt | 4.90% due October 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.90% | |
Total debt, principal amount | $ 1,750 | 1,750 |
Unsecured Debt | 6.10% due July 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.10% | |
Total debt, principal amount | $ 500 | 500 |
Unsecured Debt | 5.25% due February 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.25% | |
Total debt, principal amount | $ 1,000 | 1,000 |
Unsecured Debt | 5.30% due October 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.30% | |
Total debt, principal amount | $ 1,750 | 1,750 |
Unsecured Debt | 6.20% due July 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.20% | |
Total debt, principal amount | $ 750 | 750 |
Unsecured Debt | 5.75% due February 2033 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.75% | |
Total debt, principal amount | $ 1,000 | 1,000 |
Unsecured Debt | 8.10% due July 2036 | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.10% | |
Total debt, principal amount | $ 1,000 | 1,000 |
Unsecured Debt | 3.38% due December 2041 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.38% | |
Total debt, principal amount | $ 982 | 1,000 |
Unsecured Debt | 8.35% due July 2046 | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.35% | |
Total debt, principal amount | $ 800 | 800 |
Unsecured Debt | 3.45% due December 2051 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.45% | |
Total debt, principal amount | $ 1,099 | 1,250 |
Unsecured Debt | 7.10% due April 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.10% | |
Total debt, principal amount | $ 300 | 300 |
Unsecured Debt | 6.50% due April 2038 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.50% | |
Total debt, principal amount | $ 388 | 388 |
Unsecured Debt | 5.40% due September 2040 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.40% | |
Total debt, principal amount | $ 264 | 264 |
Secured Debt | DFS Debt | ||
Debt Instrument [Line Items] | ||
Total debt, principal amount | 10,043 | 10,290 |
Total short-term debt, carrying value | 5,801 | 5,400 |
Total long-term debt, carrying value | 4,242 | 4,890 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt, principal amount | $ 262 | $ 325 |
DEBT - Additional Information (
DEBT - Additional Information (Details) - Unsecured Debt $ in Billions | 6 Months Ended |
Aug. 04, 2023 USD ($) | |
5.45% due June 2023 | |
Debt Instrument [Line Items] | |
Repayment of principal amount | $ 1 |
Interest rate | 5.45% |
6.02% due June 2026 | |
Debt Instrument [Line Items] | |
Repayment of principal amount | $ 1 |
Interest rate | 6.02% |
DEBT - Outstanding Debt Narrati
DEBT - Outstanding Debt Narrative (Details) - USD ($) $ in Billions | Jan. 24, 2023 | Dec. 13, 2021 | Apr. 09, 2020 | Mar. 20, 2019 | Jun. 22, 2016 | Jun. 01, 2016 |
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 2 | $ 2.3 | $ 2.3 | $ 4.5 | $ 3.3 | $ 20 |
DEBT - 2021 Revolving Credit Fa
DEBT - 2021 Revolving Credit Facility (Details) - USD ($) | 6 Months Ended | |
Aug. 04, 2023 | Nov. 01, 2021 | |
2021 Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 6,000,000,000 | |
Outstanding borrowings under credit facility | $ 0 | |
2021 Revolving Credit Facility | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1% | |
2021 Revolving Credit Facility, Letter Of Credit Sub Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
2021 Revolving Credit Facility, Swing-Line Sub Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
2021 Revolving Credit Facility, Incremental Commitments | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 10,000,000 |
DEBT - Commercial Paper Program
DEBT - Commercial Paper Program (Details) - Commercial Paper Program - Commercial Paper - USD ($) | 12 Months Ended | |
Feb. 03, 2023 | Aug. 04, 2023 | |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 5,000,000,000 | |
Debt instrument, term | 397 days | |
Outstanding borrowing | $ 0 |
DEBT - Aggregate future maturit
DEBT - Aggregate future maturities (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Total maturities, principal amount | ||
2024 (remaining six months) | $ 2,927 | |
2025 | 5,463 | |
2026 | 2,538 | |
2027 | 6,031 | |
2028 | 1,095 | |
Thereafter | 9,334 | |
Total DFS debt | 27,388 | $ 29,867 |
Associated carrying value adjustments | ||
2024 (remaining six months) | (2) | |
2025 | (7) | |
2026 | (7) | |
2027 | (36) | |
2028 | (8) | |
Thereafter | (190) | |
Total | (250) | |
Total maturities, carrying value amount | ||
2024 (remaining six months) | 2,925 | |
2025 | 5,456 | |
2026 | 2,531 | |
2027 | 5,995 | |
2028 | 1,087 | |
Thereafter | 9,144 | |
Total debt, carrying value | 27,138 | $ 29,588 |
Senior Notes | ||
Total maturities, principal amount | ||
2024 (remaining six months) | 0 | |
2025 | 1,000 | |
2026 | 1,000 | |
2027 | 5,250 | |
2028 | 500 | |
Thereafter | 8,381 | |
Total DFS debt | 16,131 | |
Legacy Notes and Debentures | ||
Total maturities, principal amount | ||
2024 (remaining six months) | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 952 | |
Total DFS debt | 952 | |
DFS Debt | ||
Total maturities, principal amount | ||
2024 (remaining six months) | 2,827 | |
2025 | 4,341 | |
2026 | 1,511 | |
2027 | 773 | |
2028 | 590 | |
Thereafter | 1 | |
Total DFS debt | 10,043 | |
Other | ||
Total maturities, principal amount | ||
2024 (remaining six months) | 100 | |
2025 | 122 | |
2026 | 27 | |
2027 | 8 | |
2028 | 5 | |
Thereafter | 0 | |
Total DFS debt | $ 262 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) | 6 Months Ended |
Aug. 04, 2023 | |
Foreign currency forward and option contracts | Designated as cash flow hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 12 months |
Forward contracts to hedge monetary assets and liabilities | Non-designated as hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 3 months |
Forward contracts to hedge monetary assets and liabilities | Non-designated as hedging instruments | Financing receivables | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Interest rate swaps | Non-designated as hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 5 years |
Interest rate swaps | Non-designated as hedging instruments | Structured financing debt | |
Derivative [Line Items] | |
Term of derivative contract | 4 years |
Cross currency amortizing swaps | Non-designated as hedging instruments | |
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 | Aug. 04, 2023 | Feb. 03, 2023 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 13,679 | $ 14,579 |
Foreign exchange contracts | Designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 7,245 | 7,746 |
Foreign exchange contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 6,434 | 6,833 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount | 6,395 | 8,214 |
Interest rate contracts | Designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 0 | 1,000 |
Interest rate contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | $ 6,395 | $ 7,214 |
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 | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | $ 49 | $ 166 | $ 59 | $ 538 |
Gain (Loss) Reclassified from Accumulated OCI into Income | (68) | 306 | (159) | 402 |
Effect on the consolidated statement of income | (16) | (73) | 20 | (287) |
Total net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | (63) | 307 | (151) | 430 |
Total cost of net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | (5) | (1) | (8) | (28) |
Interest and other, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income | 0 | 0 | 0 | 0 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | 49 | 166 | 59 | 538 |
Foreign exchange contracts | Interest and other, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effect on the consolidated statement of income | (40) | (74) | 17 | (305) |
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] | ||||
Effect on the consolidated statement of income | $ 24 | $ 1 | $ 3 | $ 18 |
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 | Aug. 04, 2023 | Feb. 03, 2023 |
Derivatives, Fair Value [Line Items] | ||
Asset position | $ 386 | $ 835 |
Liability position | (277) | (1,000) |
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 109 | (165) |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 116 | 161 |
Other Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 69 | 134 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | (59) | (358) |
Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | (17) | (102) |
Designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 97 | (132) |
Designated as cash flow hedging instruments | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 96 | (14) |
Designated as cash flow hedging instruments | Other Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 0 | 0 |
Designated as cash flow hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 1 | (112) |
Designated as cash flow hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 0 | (6) |
Designated as cash flow hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 119 | 37 |
Liability position | (22) | (163) |
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 114 | 7 |
Liability position | (18) | (21) |
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 | 5 | 30 |
Liability position | (4) | (142) |
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 |
Designated as cash flow hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | (6) |
Designated as cash flow hedging instruments | Interest rate contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Designated as cash flow hedging instruments | Interest rate contracts | Other Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Designated as cash flow hedging instruments | Interest rate contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Designated as cash flow hedging instruments | Interest rate contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | (6) |
Non-designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 12 | (33) |
Non-designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 20 | 175 |
Non-designated as hedging instruments | Other Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 69 | 134 |
Non-designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | (60) | (246) |
Non-designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | (17) | (96) |
Non-designated as hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 193 | 651 |
Liability position | (217) | (736) |
Non-designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 163 | 282 |
Liability position | (149) | (121) |
Non-designated as hedging instruments | Foreign exchange contracts | Other Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 1 | 1 |
Liability position | 0 | 0 |
Non-designated as hedging instruments | Foreign exchange contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 29 | 368 |
Liability position | (68) | (614) |
Non-designated as hedging instruments | Foreign exchange contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | (1) |
Non-designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 74 | 147 |
Liability position | (38) | (95) |
Non-designated as hedging instruments | Interest rate contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 6 | 14 |
Liability position | 0 | 0 |
Non-designated as hedging instruments | Interest rate contracts | Other Non-Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 68 | 133 |
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 | (21) | 0 |
Non-designated as hedging instruments | Interest rate contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | $ (17) | $ (95) |
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 | Aug. 04, 2023 | Feb. 03, 2023 |
Financial assets | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets, Other non-current assets | Other current assets, Other non-current assets |
Gross Amounts of Recognized Assets/ (Liabilities) | $ 386 | $ 835 |
Gross Amounts Offset in the Statement of Financial Position | (201) | (540) |
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 185 | 295 |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | (43) | 0 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | $ 142 | $ 295 |
Financial liabilities | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued and other, Other non-current liabilities | Accrued and other, Other non-current liabilities |
Gross Amounts of Recognized Assets/ (Liabilities) | $ (277) | $ (1,000) |
Gross Amounts Offset in the Statement of Financial Position | 201 | 540 |
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | (76) | (460) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 17 | 25 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | (59) | (435) |
Total derivative instruments | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 109 | (165) |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position | 109 | (165) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | (26) | 25 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | $ 83 | $ (140) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) $ in Millions | 6 Months Ended |
Aug. 04, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning | $ 19,676 |
Impact of foreign currency translation and other | (36) |
Balance at the end | 19,640 |
Operating segments | Infrastructure Solutions Group | |
Goodwill [Roll Forward] | |
Balance at the beginning | 15,017 |
Impact of foreign currency translation and other | (36) |
Balance at the end | 14,981 |
Operating segments | Client Solutions Group | |
Goodwill [Roll Forward] | |
Balance at the beginning | 4,232 |
Impact of foreign currency translation and other | 0 |
Balance at the end | 4,232 |
Operating segments | Other Businesses | |
Goodwill [Roll Forward] | |
Balance at the beginning | 427 |
Impact of foreign currency translation and other | 0 |
Balance at the end | $ 427 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Business Acquisition [Line Items] | |||||
Gross | $ 27,297,000,000 | $ 27,297,000,000 | $ 27,297,000,000 | ||
Accumulated Amortization | (24,322,000,000) | (24,322,000,000) | (23,914,000,000) | ||
Finite-Lived Intangible Assets, Net, Total | 2,975,000,000 | 2,975,000,000 | 3,383,000,000 | ||
Total intangible assets | 30,382,000,000 | 30,382,000,000 | 30,382,000,000 | ||
Intangible assets, net | 6,060,000,000 | 6,060,000,000 | 6,468,000,000 | ||
Amortization expense | 209,000,000 | $ 244,000,000 | 408,000,000 | $ 487,000,000 | |
Impairment charges | 0 | $ 0 | 0 | $ 0 | |
Trade names | |||||
Business Acquisition [Line Items] | |||||
Indefinite-lived trade names | 3,085,000,000 | 3,085,000,000 | 3,085,000,000 | ||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Gross | 16,956,000,000 | 16,956,000,000 | 16,956,000,000 | ||
Accumulated Amortization | (14,703,000,000) | (14,703,000,000) | (14,474,000,000) | ||
Finite-Lived Intangible Assets, Net, Total | 2,253,000,000 | 2,253,000,000 | 2,482,000,000 | ||
Developed technology | |||||
Business Acquisition [Line Items] | |||||
Gross | 9,466,000,000 | 9,466,000,000 | 9,466,000,000 | ||
Accumulated Amortization | (8,817,000,000) | (8,817,000,000) | (8,660,000,000) | ||
Finite-Lived Intangible Assets, Net, Total | 649,000,000 | 649,000,000 | 806,000,000 | ||
Trade names | |||||
Business Acquisition [Line Items] | |||||
Gross | 875,000,000 | 875,000,000 | 875,000,000 | ||
Accumulated Amortization | (802,000,000) | (802,000,000) | (780,000,000) | ||
Finite-Lived Intangible Assets, Net, Total | $ 73,000,000 | $ 73,000,000 | $ 95,000,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Pre-tax Amortization Expense (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal 2024 (remaining six months) | $ 408 | |
Fiscal 2025 | 644 | |
Fiscal 2026 | 484 | |
Fiscal 2027 | 376 | |
Fiscal 2028 | 220 | |
Thereafter | 843 | |
Finite-Lived Intangible Assets, Net, Total | $ 2,975 | $ 3,383 |
DEFERRED REVENUE - Changes in D
DEFERRED REVENUE - Changes in Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Deferred revenue: | |||||
Deferred revenue at beginning of period | $ 29,695 | $ 27,403 | $ 30,286 | $ 27,573 | |
Revenue deferrals | 6,025 | 5,572 | 10,744 | 10,547 | |
Revenue recognized | (5,408) | (4,950) | (10,718) | (9,930) | |
Other | 0 | 0 | 0 | (165) | |
Deferred revenue at end of period | 30,312 | 28,025 | 30,312 | 28,025 | |
Short-term deferred revenue | 16,174 | 14,724 | 16,174 | 14,724 | $ 15,542 |
Long-term deferred revenue | $ 14,138 | $ 13,301 | $ 14,138 | $ 13,301 | $ 14,744 |
DEFERRED REVENUE - Remaining Pe
DEFERRED REVENUE - Remaining Performance Obligation, Expected Timing (Details) $ in Billions | Aug. 04, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 39 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-05 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 58% |
Deferred revenue recognition period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-08-05 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue recognition period |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Class V Transaction Class Action Case - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2018 | Feb. 03, 2023 | |
Loss Contingencies [Line Items] | ||
Cash | $ 14,000 | |
Shares issued (in shares) | 149,387,617 | |
Settled Litigation | ||
Loss Contingencies [Line Items] | ||
Amount awarded to other party | $ 1,000 | |
Loss contingency liability | 1,000 | |
Litigation settlement expense | 900 | |
Insurance recoveries | $ 106 |
INCOME AND OTHER TAXES - Narrat
INCOME AND OTHER TAXES - Narrative (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 36.30% | 20.30% | 27.20% | 14.80% | |
Income before income taxes | $ 0.7 | $ 0.6 | $ 1.4 | $ 1.8 | |
Unrecognized tax benefits | 1.3 | 1.3 | $ 1.3 | ||
Reasonably possible decrease in unrecognized tax benefits | $ 0.4 | $ 0.4 |
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 | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
AOCI [Roll Forward] | ||||
Balance, beginning of period | $ (2,924) | $ (2,355) | $ (3,025) | $ (1,580) |
Total other comprehensive income (loss), net of tax expense (benefit) of $7 and $(8), respectively, and $12 and $8, respectively | 111 | (282) | 244 | (275) |
Balance, end of period | (2,677) | (2,755) | (2,677) | (2,755) |
Foreign Currency Translation Adjustments | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (747) | |||
Other comprehensive income before reclassifications | 25 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $7 and $(8), respectively, and $12 and $8, respectively | 25 | |||
Balance, end of period | (722) | (722) | ||
Cash Flow Hedges | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (222) | |||
Other comprehensive income before reclassifications | 59 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 159 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $7 and $(8), respectively, and $12 and $8, respectively | 218 | |||
Balance, end of period | (4) | (4) | ||
Pension and Other Postretirement Plans | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (32) | |||
Other comprehensive income before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $7 and $(8), respectively, and $12 and $8, respectively | 1 | |||
Balance, end of period | (31) | (31) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (868) | (424) | (1,001) | (431) |
Other comprehensive income before reclassifications | 85 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 159 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $7 and $(8), respectively, and $12 and $8, respectively | 244 | |||
Balance, end of period | $ (757) | $ (705) | $ (757) | $ (705) |
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 | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net revenue | $ 22,934 | $ 26,425 | $ 43,856 | $ 52,541 | |
Cost of net revenue | [1] | (17,547) | (20,986) | (33,451) | (41,318) |
Net income | 455 | 506 | 1,033 | 1,575 | |
Total reclassifications, net of tax | Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net revenue | (63) | 307 | (151) | 430 | |
Cost of net revenue | (5) | (1) | (8) | (28) | |
Net income | $ (68) | $ 306 | $ (159) | $ 402 | |
[1] (a) Includes related party cost of net revenue as follows (Note 15): Products 384 426 $ 591 $ 681 Services 880 762 $ 1,756 $ 1,471 |
CAPITALIZATION - Schedule of St
CAPITALIZATION - Schedule of Stock by Class (Details) - shares shares in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Class of Stock [Line Items] | ||
Authorized (in shares) | 8,800 | 8,800 |
Issued (in shares) | 817 | 798 |
Outstanding (in shares) | 724 | 716 |
Class A | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 600 | 600 |
Issued (in shares) | 379 | 379 |
Outstanding (in shares) | 379 | 379 |
Class B | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 200 | 200 |
Issued (in shares) | 91 | 95 |
Outstanding (in shares) | 91 | 95 |
Class C | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 7,900 | 7,900 |
Issued (in shares) | 347 | 324 |
Outstanding (in shares) | 254 | 242 |
Class D | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 100 | 100 |
Issued (in shares) | 0 | 0 |
Outstanding (in shares) | 0 | 0 |
CAPITALIZATION - Narrative (Det
CAPITALIZATION - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 16, 2023 $ / shares | Mar. 02, 2023 $ / shares | Jun. 07, 2022 $ / shares | Feb. 24, 2022 $ / shares | Aug. 04, 2023 USD ($) $ / shares shares | Jul. 29, 2022 USD ($) $ / shares | Aug. 04, 2023 USD ($) vote $ / shares shares | Jul. 29, 2022 USD ($) $ / shares shares | Feb. 03, 2023 $ / shares shares | Sep. 23, 2021 USD ($) | |
Class of Stock [Line Items] | ||||||||||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | |||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||||||
Common stock, par or value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Common stock conversion ratio | 1 | 1 | ||||||||
Dividend declared (in dollars per share) | $ / shares | $ 0.37 | $ 0.37 | $ 0.33 | $ 0.33 | $ 0.37 | $ 0.33 | $ 0.74 | $ 0.66 | ||
Common stock dividend rate increase | 12% | |||||||||
Treasury stock repurchases | $ | $ 256 | $ 608 | $ 507 | $ 2,090 | ||||||
Class A | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of voting interests per share | vote | 10 | |||||||||
Class B | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of voting interests per share | vote | 10 | |||||||||
Class C | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of voting interests per share | vote | 1 | |||||||||
Stock repurchases, authorized amount | $ | $ 5,000 | |||||||||
Shares repurchased (in shares) | 11,000,000 | 42,000,000 | ||||||||
Treasury stock repurchases | $ | $ 500 | $ 2,100 | ||||||||
Class C | Class B Common Stock Into Class C Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion of stock, shares issued (in shares) | 4,716,548 | |||||||||
Class D | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of voting interests per share | vote | 1 |
CAPITALIZATION - Schedule of Di
CAPITALIZATION - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||
Aug. 04, 2023 | Jun. 16, 2023 | May 05, 2023 | Mar. 02, 2023 | Jul. 29, 2022 | Jun. 07, 2022 | Apr. 29, 2022 | Feb. 24, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Equity [Abstract] | ||||||||||||
Dividend declared (in dollars per share) | $ 0.37 | $ 0.37 | $ 0.33 | $ 0.33 | $ 0.37 | $ 0.33 | $ 0.74 | $ 0.66 | ||||
Dividend paid (in dollars per share) | $ 0.37 | $ 0.37 | $ 0.33 | $ 0.33 | ||||||||
Dividends | $ 268 | $ 270 | $ 242 | $ 248 | $ 281 | $ 248 | $ 562 | $ 501 |
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 | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Earnings Per Share [Abstract] | ||||
Dell Technologies Common Stock - Basic (in dollars per share) | $ 0.64 | $ 0.69 | $ 1.44 | $ 2.12 |
Dell Technologies Common Stock - Diluted (in dollars per share) | $ 0.63 | $ 0.68 | $ 1.42 | $ 2.06 |
Numerator: Dell Technologies Common Stock | ||||
Net income attributable to Dell Technologies Inc. - basic | $ 462 | $ 511 | $ 1,045 | $ 1,583 |
Net income attributable to Dell Technologies Inc. - diluted | $ 462 | $ 511 | $ 1,045 | $ 1,583 |
Denominator: Dell Technologies Common Stock weighted-average shares outstanding | ||||
Weighted average shares outstanding, basic (in shares) | 726 | 739 | 725 | 746 |
Dilutive effect of options, restricted stock units, restricted stock, and other (in shares) | 12 | 16 | 12 | 22 |
Weighted average shares outstanding, diluted (in shares) | 738 | 755 | 737 | 768 |
Weighted-average shares outstanding - antidilutive (in shares) | 0 | 15 | 8 | 8 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transaction (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Related Party Transaction [Line Items] | |||||
Total net revenue | $ 22,934 | $ 26,425 | $ 43,856 | $ 52,541 | |
Due To/From [Abstract] | |||||
Due from related party, net, non-current | 236 | 236 | $ 440 | ||
Related Party | |||||
Due To/From [Abstract] | |||||
Due from related party, net, current | 404 | 404 | 378 | ||
Due from related party, net, non-current | 236 | 236 | 440 | ||
Due to related party, current | 1,252 | 1,252 | 2,067 | ||
Related Party | Other current assets | VMware, Inc. | |||||
Deferred Costs: | |||||
Total deferred charges | 2,898 | 2,898 | 3,000 | ||
Related Party | Other non-current assets | VMware, Inc. | |||||
Deferred Costs: | |||||
Total deferred charges | 2,277 | 2,277 | $ 2,537 | ||
Products | |||||
Related Party Transaction [Line Items] | |||||
Total net revenue | 16,935 | 20,810 | 31,971 | 41,274 | |
Products | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Cost of net revenue - products and services | 384 | 426 | 591 | 681 | |
Products | Net revenue - products | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Total net revenue | 38 | 35 | 78 | 81 | |
Services | |||||
Related Party Transaction [Line Items] | |||||
Total net revenue | 5,999 | 5,615 | 11,885 | 11,267 | |
Services | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Cost of net revenue - products and services | $ 880 | $ 762 | $ 1,756 | $ 1,471 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - Tax Agreement - Related Party - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2023 | Feb. 03, 2023 | |
Related Party Transaction [Line Items] | ||
Accounts receivable | $ 484 | $ 599 |
Transition tax, expected payment period | 2 years | |
Income taxes receivable | $ 93 | $ 146 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 6 Months Ended |
Aug. 04, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Net Revenue by Reportable Segments to Consolidated Net Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 22,934 | $ 26,425 | $ 43,856 | $ 52,541 |
Consolidated operating income (loss) | 1,165 | 1,270 | 2,234 | 2,820 |
Amortization of intangibles | (209) | (244) | (408) | (487) |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 21,403 | 25,026 | 40,979 | 49,898 |
Consolidated operating income (loss) | 2,018 | 2,024 | 3,650 | 4,221 |
Operating segments | Infrastructure Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 8,461 | 9,536 | 16,054 | 18,821 |
Consolidated operating income (loss) | 1,049 | 1,046 | 1,789 | 2,128 |
Operating segments | Client Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 12,942 | 15,490 | 24,925 | 31,077 |
Consolidated operating income (loss) | 969 | 978 | 1,861 | 2,093 |
Operating segments | Other businesses | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 1,528 | 1,399 | 2,871 | 2,638 |
Consolidated operating income (loss) | (44) | (71) | (80) | (135) |
Unallocated transactions | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 3 | 0 | 6 | 5 |
Consolidated operating income (loss) | 3 | (1) | 5 | 1 |
Other corporate expenses | (373) | (196) | (471) | (292) |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Impact of purchase accounting | (4) | (3) | (8) | (12) |
Amortization of intangibles | (209) | (244) | (408) | (487) |
Transaction-related expenses | (3) | (3) | (6) | (8) |
Stock-based compensation expense | $ (223) | $ (236) | $ (448) | $ (468) |
SEGMENT INFORMATION - Disaggreg
SEGMENT INFORMATION - Disaggregation of Net Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 22,934 | $ 26,425 | $ 43,856 | $ 52,541 |
Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 21,403 | 25,026 | 40,979 | 49,898 |
Operating segments | Infrastructure Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 8,461 | 9,536 | 16,054 | 18,821 |
Operating segments | Infrastructure Solutions Group | Servers and networking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 4,274 | 5,209 | 8,111 | 10,257 |
Operating segments | Infrastructure Solutions Group | Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 4,187 | 4,327 | 7,943 | 8,564 |
Operating segments | Client Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 12,942 | 15,490 | 24,925 | 31,077 |
Operating segments | Client Solutions Group | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 10,554 | 12,141 | 20,416 | 24,112 |
Operating segments | Client Solutions Group | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 2,388 | $ 3,349 | $ 4,509 | $ 6,965 |
SUPPLEMENTAL CONSOLIDATED FIN_3
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Information on Selected Accounts (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 | Jul. 29, 2022 | Jan. 28, 2022 |
Cash, cash equivalents, and restricted cash: | ||||
Cash and cash equivalents | $ 8,364 | $ 8,607 | ||
Restricted cash - other current assets | 281 | 272 | ||
Restricted cash - other non-current assets | 5 | 15 | ||
Total cash, cash equivalents, and restricted cash | 8,650 | 8,894 | $ 6,093 | $ 10,082 |
Inventories: | ||||
Production materials | 2,197 | 3,225 | ||
Work-in-process | 604 | 708 | ||
Finished goods | 783 | 843 | ||
Total inventories | 3,584 | 4,776 | ||
Deferred Costs: | ||||
Total deferred costs, current | 5,837 | 5,459 | ||
Property, plant, and equipment, net: | ||||
Total property, plant, and equipment | 13,548 | 13,092 | ||
Accumulated depreciation and amortization | (7,296) | (6,883) | ||
Equipment under operating lease, net | 6,252 | 6,209 | ||
Computer equipment | ||||
Property, plant, and equipment, net: | ||||
Total property, plant, and equipment | 7,385 | 6,899 | ||
Land and buildings | ||||
Property, plant, and equipment, net: | ||||
Total property, plant, and equipment | 2,936 | 3,059 | ||
Machinery and other equipment | ||||
Property, plant, and equipment, net: | ||||
Total property, plant, and equipment | $ 3,227 | $ 3,134 |
SUPPLEMENTAL CONSOLIDATED FIN_4
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Warranty liability: | ||||
Warranty liability at beginning of period | $ 438 | $ 468 | $ 467 | $ 480 |
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties | 202 | 244 | 398 | 467 |
Service obligations honored | (201) | (249) | (426) | (484) |
Warranty liability at end of period | $ 439 | $ 463 | $ 439 | $ 463 |
SUPPLEMENTAL CONSOLIDATED FIN_5
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Severance Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Severance liability: | ||||
Severance liability at beginning of period | $ 162 | $ 63 | $ 408 | $ 74 |
Severance charges | 364 | 46 | 412 | 63 |
Cash paid and other | (69) | (21) | (363) | (49) |
Severance liability at end of period | $ 457 | $ 88 | $ 457 | $ 88 |
SUPPLEMENTAL CONSOLIDATED FIN_6
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Severance charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | $ 364 | $ 46 | $ 412 | $ 63 |
Cost of net revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | 27 | (2) | 48 | 1 |
Selling, general, and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | 324 | 46 | 350 | 57 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total severance charges | $ 13 | $ 2 | $ 14 | $ 5 |
SUPPLEMENTAL CONSOLIDATED FIN_7
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Narrative (Details) - Supply Chain Finance Program - Third-Party Financial Institution - USD ($) $ in Billions | 6 Months Ended | |
Aug. 04, 2023 | Feb. 03, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Payment term | 120 days | |
Accounts payable | $ 1.1 | $ 1 |
SUPPLEMENTAL CONSOLIDATED FIN_8
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Interest and Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Interest and other, net: | ||||
Investment income, primarily interest | $ 66 | $ 16 | $ 125 | $ 31 |
Loss on investments, net | (29) | (255) | (44) | (241) |
Interest expense | (352) | (298) | (757) | (563) |
Foreign exchange | (65) | (66) | (97) | (155) |
Other | (71) | (32) | (42) | (44) |
Total interest and other, net | $ (451) | $ (635) | $ (815) | $ (972) |