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FINANCIAL SERVICES (Tables)

3 Months Ended

May 03, 2024

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:

			May 3, 2024																		February 2, 2024
			Revolving						Fixed-term						Total						Revolving						Fixed-term						Total
			(in millions)
Financing receivables, net:
Customer receivables, gross (a)			$	163					$	10,470					$	10,633					$	173					$	10,360					$	10,533
Allowances for losses			(8)						(187)						(195)						(9)						(161)						(170)
Customer receivables, net			155						10,283						10,438						164						10,199						10,363
Residual interest			—						163						163						—						157						157
Financing receivables, net			$	155					$	10,446					$	10,601					$	164					$	10,356					$	10,520
Short-term			$	155					$	4,505					$	4,660					$	164					$	4,479					$	4,643
Long-term			$	—					$	5,941					$	5,941					$	—					$	5,877					$	5,877

____________________

(a)    Customer receivables, gross include amounts due from customers under revolving loans, fixed-term loans, fixed-term leases, and accrued interest.

Schedule of Changes in Allowance for Financing Receivables Losses

The following table presents the changes in allowance for financing receivables losses for the periods indicated:

			Three Months Ended
			May 3, 2024																		May 5, 2023
			Revolving						Fixed-term						Total						Revolving						Fixed-term						Total
			(in millions)
Allowance for financing receivable losses:
Balances at beginning of period			$	9					$	161					$	170					$	88					$	113					$	201
Charge-offs, net of recoveries			(2)						(6)						(8)						(17)						(1)						(18)
Provision charged to income statement			1						32						33						13						23						36
Balances at end of period			$	8					$	187					$	195					$	84					$	135					$	219

Schedule of Aging of Customer's 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:

			May 3, 2024																								February 2, 2024
			Current						Past Due 1 — 90 Days						Past Due >90 Days						Total						Current						Past Due 1 — 90 Days						Past Due >90 Days						Total
			(in millions)
Revolving			$	142					$	17					$	4					$	163					$	151					$	17					$	5					$	173
Fixed-term — Consumer and Commercial			9,477						891						102						10,470						9,345						889						126						10,360
Total customer receivables, gross			$	9,619					$	908					$	106					$	10,633					$	9,496					$	906					$	131					$	10,533

Schedule of Customer Receivables, Gross, Including Accrued Interest, by Credit Quality Indicator, Segregated by Class

The following tables present customer receivables, gross, including accrued interest, by credit quality indicator, segregated by class, as of the dates indicated:

			May 3, 2024
			Fixed-term — Consumer and Commercial
			Fiscal Year of Origination
			2025						2024						2023						2022						2021						Years Prior						Revolving						Total
			(in millions)
Higher			$	687					$	2,827					$	1,699					$	683					$	274					$	46					$	39					$	6,255
Mid			237						1,030						783						202						55						13						49						2,369
Lower			764						578						374						143						61						14						75						2,009
Total			$	1,688					$	4,435					$	2,856					$	1,028					$	390					$	73					$	163					$	10,633

			February 2, 2024
			Fixed-term — Consumer and Commercial
			Fiscal Year of Origination
			2024						2023						2022						2021						2020						Years Prior												Revolving						Total
			(in millions)
Higher			$	3,261					$	1,979					$	833					$	345					$	64					$	—											$	47					$	6,529
Mid			1,111						911						290						86						19						—												50						2,467
Lower			703						469						187						80						21						1												76						1,537
Total			$	5,075					$	3,359					$	1,310					$	511					$	104					$	1											$	173					$	10,533

Schedule of Net Revenue, Cost of Net Revenue, and Gross Margin Recognized

The following table presents amounts included in the Condensed Consolidated Statements of Income related to sales-type lease activity for the periods indicated:

									Three Months Ended
															May 3, 2024						May 5, 2023
															(in millions)
Net revenue — products															$	728					$	247
Cost of net revenue — products															618						196
Gross margin — products															$	110					$	51

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 Statements of Financial Position as of the date indicated:

			May 3, 2024
			(in millions)
Fiscal 2025 (remaining nine months)			$	2,109
Fiscal 2026			2,416
Fiscal 2027			1,529
Fiscal 2028			522
Fiscal 2029 and beyond			226
Total undiscounted cash flows			6,802
Fixed-term loans			4,740
Revolving loans			163
Less: Unearned income			(1,072)
Total customer receivables, gross			$	10,633

Schedule of Components of Operating Lease Portfolio Included in Property, Plant, and Equipment, Net

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:

			May 3, 2024						February 2, 2024
			(in millions)
Equipment under operating lease, gross			$	3,951					$	4,002
Less: Accumulated depreciation			(1,827)						(1,800)
Equipment under operating lease, net			$	2,124					$	2,202

Schedule of Operating Lease Income Related to Lease Payments and Depreciation 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
															May 3, 2024						May 5, 2023
															(in millions)
Income related to lease payments															$	356					$	321
Depreciation expense															$	240					$	233

Schedule of Future Payments to be Received in Operating Lease Contracts

The following table presents the future payments to be received by the Company in operating lease contracts as of the date indicated:

			May 3, 2024
			(in millions)
Fiscal 2025 (remaining nine months)			$	852
Fiscal 2026			819
Fiscal 2027			443
Fiscal 2028			169
Fiscal 2029 and beyond			60
Total			$	2,343

Schedule of DFS Debt

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:

			May 3, 2024						February 2, 2024
DFS debt			(in millions)
DFS U.S. debt:
Asset-based financing facility			$	2,331					$	2,730
Fixed-term securitization offerings			3,305						3,157
Other			26						28
Total DFS U.S. debt, principal amount			5,662						5,915
DFS international debt:
Securitization facility			720						761
Other borrowings			797						935
Note payable			250						250
Dell Bank senior unsecured eurobonds			1,609						1,631
Total DFS international debt, principal amount			3,376						3,577
Total DFS debt, principal amount			$	9,038					$	9,492
Total short-term DFS debt			$	5,038					$	5,863
Total long-term DFS debt			$	4,000					$	3,629

The following table summarizes the Company’s outstanding debt as of the dates indicated:

			May 3, 2024						February 2, 2024
			(in millions)
Senior Notes			$	15,607					$	15,607
Legacy Notes			952						952
DFS Debt (Note 4)			9,038						9,492
Other			108						171
Total debt, principal amount			25,705						26,222
Unamortized discount, net of unamortized premium			(111)						(114)
Debt issuance costs			(114)						(114)
Total debt, carrying value			$	25,480					$	25,994
Total short-term debt, carrying value			$	6,098					$	6,982
Total long-term debt, carrying value			$	19,382					$	19,012

Schedule of Assets and Liabilities 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:

			May 3, 2024						February 2, 2024
			(in millions)
Assets held by consolidated VIEs
Other current assets			$	124					$	136
Financing receivables, net of allowance
Short-term			$	3,140					$	3,314
Long-term			$	2,752					$	2,747
Property, plant, and equipment, net			$	1,031					$	1,081
Liabilities held by consolidated VIEs
Debt, net of unamortized debt issuance costs
Short-term			$	3,553					$	4,450
Long-term			$	2,804					$	2,184

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