2019 Q2 Form 10-Q Financial Statement

#000157199619000025 Filed on June 10, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2018 Q2
Revenue $21.91B $21.36B
YoY Change 2.58% 18.64%
Cost Of Revenue $15.11B $15.48B
YoY Change -2.37% 14.29%
Gross Profit $6.797B $5.878B
YoY Change 15.63% 31.88%
Gross Profit Margin 31.03% 27.52%
Selling, General & Admin $5.071B $4.944B
YoY Change 2.57% 7.57%
% of Gross Profit 74.61% 84.11%
Research & Development $1.176B $1.087B
YoY Change 8.19% -4.06%
% of Gross Profit 17.3% 18.49%
Depreciation & Amortization $1.616B $1.914B
YoY Change -15.57% -13.47%
% of Gross Profit 23.78% 32.56%
Operating Expenses $6.247B $6.031B
YoY Change 3.58% 5.27%
Operating Profit $550.0M -$153.0M
YoY Change -459.48% -87.97%
Interest Expense -$711.0M -$529.0M
YoY Change 34.4% -9.88%
% of Operating Profit -129.27%
Other Income/Expense, Net -$693.0M -$470.0M
YoY Change 47.45% -17.83%
Pretax Income -$143.0M -$600.0M
YoY Change -76.17% -67.46%
Income Tax -$472.0M -$85.00M
% Of Pretax Income
Net Earnings $293.0M -$636.0M
YoY Change -146.07% -45.69%
Net Earnings / Revenue 1.34% -2.98%
Basic Earnings Per Share $0.41
Diluted Earnings Per Share $0.38 -$458.9K
COMMON SHARES
Basic Shares Outstanding 717.0M shares
Diluted Shares Outstanding 751.0M shares

Balance Sheet

Concept 2019 Q2 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.040B $17.73B
YoY Change -49.0% 58.64%
Cash & Equivalents $9.040B $15.32B
Short-Term Investments $2.402B
Other Short-Term Assets $6.461B $6.049B
YoY Change 6.81% 29.95%
Inventory $3.360B $2.933B
Prepaid Expenses
Receivables $10.52B $10.56B
Other Receivables $4.277B $3.962B
Total Short-Term Assets $33.66B $41.23B
YoY Change -18.37% 35.7%
LONG-TERM ASSETS
Property, Plant & Equipment $5.505B $5.303B
YoY Change 3.81% -2.48%
Goodwill $40.02B $39.66B
YoY Change 0.91% 1.86%
Intangibles $20.95B $26.74B
YoY Change -21.65% -19.67%
Long-Term Investments $782.0M $3.943B
YoY Change -80.17% 4.53%
Other Assets $4.856B $2.548B
YoY Change 90.58% 70.78%
Total Long-Term Assets $76.24B $81.99B
YoY Change -7.01% -4.28%
TOTAL ASSETS
Total Short-Term Assets $33.66B $41.23B
Total Long-Term Assets $76.24B $81.99B
Total Assets $109.9B $123.2B
YoY Change -10.81% 6.18%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $18.10B $18.53B
YoY Change -2.36% 23.04%
Accrued Expenses $7.455B $6.952B
YoY Change 7.24% 9.03%
Deferred Revenue $13.04B $11.50B
YoY Change 13.47%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $4.884B $7.133B
YoY Change -31.53% 47.32%
Total Short-Term Liabilities $43.48B $44.11B
YoY Change -1.44% 20.41%
LONG-TERM LIABILITIES
Long-Term Debt $48.64B $44.77B
YoY Change 8.64% -0.4%
Other Long-Term Liabilities $6.525B $7.045B
YoY Change -7.38% -16.48%
Total Long-Term Liabilities $55.17B $51.82B
YoY Change 6.47% -2.94%
TOTAL LIABILITIES
Total Short-Term Liabilities $43.48B $44.11B
Total Long-Term Liabilities $55.17B $51.82B
Total Liabilities $109.8B $105.4B
YoY Change 4.16% 7.16%
SHAREHOLDERS EQUITY
Retained Earnings -$21.05B -$7.438B
YoY Change 183.05% 8.44%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $65.00M $1.477B
YoY Change -95.6% 32.7%
Treasury Stock Shares
Shareholders Equity -$6.464B $10.49B
YoY Change
Total Liabilities & Shareholders Equity $109.9B $123.2B
YoY Change -10.81% 6.18%

Cashflow Statement

Concept 2019 Q2 2018 Q2
OPERATING ACTIVITIES
Net Income $293.0M -$636.0M
YoY Change -146.07% -45.69%
Depreciation, Depletion And Amortization $1.616B $1.914B
YoY Change -15.57% -13.47%
Cash From Operating Activities $682.0M $1.159B
YoY Change -41.16% 306.67%
INVESTING ACTIVITIES
Capital Expenditures $716.0M $273.0M
YoY Change 162.27% 11.43%
Acquisitions $3.000M $0.00
YoY Change -100.0%
Other Investing Activities $261.0M $254.0M
YoY Change 2.76% -34.03%
Cash From Investing Activities -$458.0M -$149.0M
YoY Change 207.38% -392.16%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $6.000M $0.00
YoY Change
Debt Paid & Issued, Net $9.569B $1.822B
YoY Change 425.19% -41.53%
Cash From Financing Activities -$719.0M $543.0M
YoY Change -232.41% -390.37%
NET CHANGE
Cash From Operating Activities $682.0M $1.159B
Cash From Investing Activities -$458.0M -$149.0M
Cash From Financing Activities -$719.0M $543.0M
Net Change In Cash -$531.0M $1.467B
YoY Change -136.2% 925.87%
FREE CASH FLOW
Cash From Operating Activities $682.0M $1.159B
Capital Expenditures $716.0M $273.0M
Free Cash Flow -$34.00M $886.0M
YoY Change -103.84% 2115.0%

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CY2019Q2 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2019Q2 dell Proceedsfrom Issuanceof Common Stockof Subsidiary
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CY2019Q2 us-gaap Profit Loss
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CY2019Q2 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2019Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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CY2019Q2 us-gaap Treasury Stock Value Acquired Cost Method
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CY2019Q2 dell Reclassifications Of Permanent To Temporary Equity
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CY2018Q2 us-gaap Profit Loss
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CY2018Q2 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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CY2018Q2 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
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CY2018Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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199000000 USD
CY2018Q2 us-gaap Treasury Stock Value Acquired Cost Method
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CY2018Q2 dell Reclassifications Of Permanent To Temporary Equity
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460000000 USD
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CY2019Q2 us-gaap Basis Of Accounting
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<div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-weight:bold;">NOTE 1</span><span style="font-family:inherit;font-size:10pt;font-weight:bold;"> — </span><span style="font-weight:bold;">BASIS OF PRESENTATION</span><span style="font-family:inherit;font-size:10pt;font-weight:bold;"> </span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">References in these </span><span style="font-family:inherit;font-size:10pt;">Notes to the Condensed Consolidated Financial Statements</span><span style="font-family:inherit;font-size:10pt;"> to the “Company” or “Dell Technologies” mean Dell Technologies Inc. individually and together with its consolidated subsidiaries.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Basis of Presentation — </span><span style="font-family:inherit;font-size:10pt;">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 </span><span style="font-family:inherit;font-size:10pt;">February 1, 2019</span><span style="font-family:inherit;font-size:10pt;">. These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of Dell Technologies Inc. as of </span><span style="font-family:inherit;font-size:10pt;">May 3, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">February 1, 2019</span><span style="font-family:inherit;font-size:10pt;">, the results of its operations and corresponding comprehensive income (loss) for the three months ended </span><span style="font-family:inherit;font-size:10pt;">May 3, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">May 4, 2018</span><span style="font-family:inherit;font-size:10pt;">, and its cash flows for the three months ended </span><span style="font-family:inherit;font-size:10pt;">May 3, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">May 4, 2018</span><span style="font-family:inherit;font-size:10pt;">.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations, comprehensive income (loss), and cash flows for the three months ended </span><span style="font-family:inherit;font-size:10pt;">May 3, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">May 4, 2018</span><span style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended </span><span style="font-family:inherit;font-size:10pt;">February 1, 2019</span><span style="font-family:inherit;font-size:10pt;"> (“Fiscal 2019”) was a 52-week period, and the fiscal year ending </span><span style="font-family:inherit;font-size:10pt;">January 31, 2020</span><span style="font-family:inherit;font-size:10pt;"> (“Fiscal 2020”) will be a 52-week period.</span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Principles of Consolidation </span><span style="font-family:inherit;font-size:10pt;">— These Condensed Consolidated Financial Statements include the accounts of Dell Technologies and its wholly-owned subsidiaries, as well as the accounts of VMware, Inc., Pivotal Software, Inc. (“Pivotal”), and SecureWorks Corp. (“Secureworks”), each of which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Unless the context indicates otherwise, references in these </span><span style="font-family:inherit;font-size:10pt;">Notes to the Condensed Consolidated Financial Statements</span><span style="font-family:inherit;font-size:10pt;"> to “VMware” mean the VMware reportable segment, which reflects the operations of VMware, Inc. (NYSE: VMW) within Dell Technologies.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">EMC Merger Transaction</span><span style="font-family:inherit;font-size:10pt;"> — On </span><span style="font-family:inherit;font-size:10pt;">September 7, 2016</span><span style="font-family:inherit;font-size:10pt;">, the Company completed its acquisition of EMC Corporation (“EMC”) by merger (the “EMC merger transaction”). The consolidated results of EMC are included in Dell Technologies’ consolidated results presented in these financial statements.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Pivotal Initial Public Offering </span><span style="font-family:inherit;font-size:10pt;">— On April 24, 2018, Pivotal, which is majority-owned by Dell Technologies, completed a registered underwritten initial public offering (“IPO”) of its Class A common stock (NYSE: PVTL). The results of Pivotal’s operations are included in other businesses. For more information regarding the Company’s ownership of Pivotal, see </span><span style="font-family:inherit;font-size:10pt;">Note 13</span><span style="font-family:inherit;font-size:10pt;"> of the </span><span style="font-family:inherit;font-size:10pt;">Notes to the Condensed Consolidated Financial Statements</span><span style="font-family:inherit;font-size:10pt;">.</span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">Recently Issued Accounting Pronouncements</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Measurement of Credit Losses on Financial Instruments</span><span style="font-family:inherit;font-size:10pt;"> </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">—</span><span style="font-family:inherit;font-size:10pt;"> In June 2016, the Financial Accounting Standards Board (“FASB”) issued amended guidance which replaces the current incurred loss impairment methodology for measurement of credit losses on financial instruments with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal periods beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on the Condensed Consolidated Financial Statements.</span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Intangibles - Goodwill and Other - Internal-Use Software </span><span style="font-family:inherit;font-size:10pt;">—</span><span style="font-family:inherit;font-size:10pt;font-style:italic;"> </span><span style="font-family:inherit;font-size:10pt;">In August 2018, the FASB issued guidance on a customer’s accounting for implementation costs incurred in a cloud-computing arrangement when hosted by a vendor. In a hosting arrangement that is a service contract, certain implementation costs should be capitalized and amortized over the term of the arrangement. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal periods beginning after December 15, 2018. The Company does not expect the adoption of this guidance to have a material impact on the Condensed Consolidated Financial Statements.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">Recently Adopted Accounting Pronouncements</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Leases</span><span style="font-family:inherit;font-size:10pt;"> </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">—</span><span style="font-family:inherit;font-size:10pt;"> In February 2016, the FASB issued amended guidance on the accounting for leasing transactions. The primary objective of this update is to increase transparency and comparability among organizations by requiring lessees to recognize a lease liability for the obligation to make lease payments and a right-of-use (“ROU”) asset for the right to use the underlying asset for the lease term. The guidance also results in some changes to lessor accounting and requires additional disclosures about all leasing arrangements.  </span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company adopted the standard (the “new lease standard”) as of February 2, 2019 using a modified retrospective approach, with the cumulative-effect adjustment to the opening balance of stockholders’ equity (deficit) as of the adoption date. The Company elected to apply the practical expedient using the transition option whereby prior comparative periods were not retrospectively adjusted in the Consolidated Financial Statements. Accordingly, prior comparative periods have not been adjusted in the Condensed Consolidated Financial Statements. The Company also elected the package of practical expedients which does not require reassessment of initial direct costs, classification of a lease, and definition of a lease. </span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The adoption of the new lease standard resulted in the recognition of </span><span style="font-family:inherit;font-size:10pt;"><span>$1.6 billion</span></span><span style="font-family:inherit;font-size:10pt;"> in operating lease liabilities and related ROU assets on the Consolidated Statements of Financial Position. The Company recorded an immaterial adjustment to stockholders’ equity (deficit) as of February 2, 2019 to reflect the cumulative effect of adoption of the new lease standard. As of February 2, 2019, there were no material finance leases for which the Company was a lessee.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In the area of lessor accounting, as of February 2, 2019, the Company began to originate operating leases due to the elimination of third-party residual value guarantee insurance from the sales-type lease classification test. Leases that commenced prior to the adoption of the new lease standard were not reassessed or restated pursuant to the practical expedients elected. Accordingly, there was no cumulative adjustment to stockholders’ equity (deficit) related to lessor accounting. </span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">See </span><span style="font-family:inherit;font-size:10pt;">Note 4</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">Note 5</span><span style="font-family:inherit;font-size:10pt;"> of the </span><span style="font-family:inherit;font-size:10pt;">Notes to the Condensed Consolidated Financial Statements</span><span style="font-family:inherit;font-size:10pt;"> for additional information about the Company’s leases from a lessor and lessee perspective, respectively.</span></div>
CY2019Q2 us-gaap Use Of Estimates
UseOfEstimates
<div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations, comprehensive income (loss), and cash flows for the three months ended </span><span style="font-family:inherit;font-size:10pt;">May 3, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">May 4, 2018</span><span style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period.</span></div>
CY2019Q2 us-gaap Fiscal Period
FiscalPeriod
<div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended </span><span style="font-family:inherit;font-size:10pt;">February 1, 2019</span><span style="font-family:inherit;font-size:10pt;"> (“Fiscal 2019”) was a 52-week period, and the fiscal year ending </span><span style="font-family:inherit;font-size:10pt;">January 31, 2020</span><span style="font-family:inherit;font-size:10pt;"> (“Fiscal 2020”) will be a 52-week period.</span></div>
CY2019Q2 us-gaap Equity Securities Fv Ni
EquitySecuritiesFvNi
47000000 USD
CY2019Q1 us-gaap Equity Securities Fv Ni
EquitySecuritiesFvNi
334000000 USD
CY2019Q2 us-gaap Derivative Assets
DerivativeAssets
168000000 USD
CY2019Q1 us-gaap Derivative Assets
DerivativeAssets
97000000 USD
CY2019Q2 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
5382000000 USD
CY2019Q1 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
5652000000 USD
CY2019Q2 us-gaap Derivative Liabilities
DerivativeLiabilities
28000000 USD
CY2019Q1 us-gaap Derivative Liabilities
DerivativeLiabilities
60000000 USD
CY2019Q2 us-gaap Liabilities Fair Value Disclosure
LiabilitiesFairValueDisclosure
28000000 USD
CY2019Q1 us-gaap Liabilities Fair Value Disclosure
LiabilitiesFairValueDisclosure
60000000 USD
CY2019Q2 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
DerivativesMethodsOfAccountingHedgingDerivatives
<div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><span style="font-family:inherit;font-size:10pt;font-style:italic;">Derivative Instruments</span> — The Company’s derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company’s derivative instrument portfolio.<div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">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.</span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. The earnings effects of the derivative instruments are presented in the same income statement line items as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative. The Company does not have any derivatives designated as fair value hedges.</span></div>
CY2019Q2 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueAmount
735000000 USD
CY2019Q1 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueAmount
671000000 USD
CY2019Q2 us-gaap Equity Securities Without Readily Determinable Fair Value Upward Price Adjustment Annual Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueUpwardPriceAdjustmentAnnualAmount
44000000 USD
CY2019Q2 us-gaap Equity Securities Without Readily Determinable Fair Value Downward Price Adjustment Annual Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueDownwardPriceAdjustmentAnnualAmount
8000000 USD
CY2019Q2 us-gaap Payments To Acquire Loans And Leases Held For Investment
PaymentsToAcquireLoansAndLeasesHeldForInvestment
1700000000 USD
CY2019Q2 us-gaap Notes Receivable Net
NotesReceivableNet
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CY2019Q1 us-gaap Notes Receivable Net
NotesReceivableNet
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CY2019Q2 us-gaap Notes And Loans Receivable Net Current
NotesAndLoansReceivableNetCurrent
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CY2019Q1 us-gaap Notes And Loans Receivable Net Current
NotesAndLoansReceivableNetCurrent
4398000000 USD
CY2019Q2 us-gaap Notes And Loans Receivable Net Noncurrent
NotesAndLoansReceivableNetNoncurrent
4131000000 USD
CY2019Q1 us-gaap Notes And Loans Receivable Net Noncurrent
NotesAndLoansReceivableNetNoncurrent
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CY2019Q2 us-gaap Sales Type Lease Interest Income Lease Receivable
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CY2019Q2 us-gaap Sales Type Lease Revenue
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130000000 USD
CY2019Q2 us-gaap Cost Of Goods Sold Sales Type Lease
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CY2019Q2 dell Salestype Lease Gross Profit
SalestypeLeaseGrossProfit
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2038000000 USD
CY2019Q2 us-gaap Sales Type And Direct Financing Leases Lease Receivable Payments To Be Received Two Years
SalesTypeAndDirectFinancingLeasesLeaseReceivablePaymentsToBeReceivedTwoYears
1890000000 USD
CY2019Q2 us-gaap Sales Type And Direct Financing Leases Lease Receivable Payments To Be Received Three Years
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1086000000 USD
CY2019Q2 us-gaap Sales Type And Direct Financing Leases Lease Receivable Payments To Be Received Four Years
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390000000 USD
CY2019Q2 dell Salestype And Direct Financing Leases Lease Receivable Payments To Be Received Five Years And Thereafter
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CY2019Q2 us-gaap Sales Type And Direct Financing Leases Lease Receivable Payments To Be Received
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90000000 USD
CY2019Q2 us-gaap Lessor Operating Lease Payments To Be Received Two Years
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CY2019Q2 us-gaap Lessor Operating Lease Payments To Be Received Four Years
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CY2019Q2 dell Lessor Operating Lease Payments To Be Received Five Years And Thereafter
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CY2019Q2 us-gaap Lessor Operating Lease Payments To Be Received
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CY2019Q2 us-gaap Financing Receivable Significant Sales
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CY2019Q2 us-gaap Operating Lease Cost
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CY2019Q2 us-gaap Lease Cost
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CY2019Q2 us-gaap Operating Lease Liability
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P9Y2M12D
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CY2019Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
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CY2019Q2 us-gaap Lessee Operating Lease Liability Payments Due
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363000000 USD
CY2019Q2 us-gaap Operating Lease Liability
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240000000 USD
CY2019Q1 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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93000000 USD
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30000000 USD
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153000000 USD
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431000000 USD
CY2019Q2 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
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LongtermDebtMaturitiesRepaymentsofPrincipalRemainderofFiscalYearNet
3988000000 USD
CY2019Q2 dell Longterm Debt Maturities Repaymentsof Principalin Year Two Net
LongtermDebtMaturitiesRepaymentsofPrincipalinYearTwoNet
5893000000 USD
CY2019Q2 dell Longterm Debt Maturities Repaymentsof Principalin Year Three Net
LongtermDebtMaturitiesRepaymentsofPrincipalinYearThreeNet
8068000000 USD
CY2019Q2 dell Longterm Debt Maturities Repaymentsof Principalin Year Four Net
LongtermDebtMaturitiesRepaymentsofPrincipalinYearFourNet
6050000000 USD
CY2019Q2 dell Longterm Debt Maturities Repaymentsof Principalin Year Five Net
LongtermDebtMaturitiesRepaymentsofPrincipalinYearFiveNet
12916000000 USD
CY2019Q2 dell Longterm Debt Maturities Repaymentsof Principal After Year Five Net
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58000000 USD
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OtherComprehensiveIncomeLossCashFlowHedgeGainLossBeforeReclassificationAndTax
121000000 USD
CY2018Q2 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification Before Tax
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CY2019Q2 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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CY2018Q2 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
DerivativeInstrumentsNotDesignatedAsHedgingInstrumentsGainLossNet
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140000000 USD
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37000000 USD
CY2019Q2 us-gaap Derivative Fair Value Of Derivative Asset
DerivativeFairValueOfDerivativeAsset
377000000 USD
CY2019Q2 us-gaap Derivative Asset Fair Value Gross Liability
DerivativeAssetFairValueGrossLiability
209000000 USD
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168000000 USD
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168000000 USD
CY2019Q2 us-gaap Derivative Fair Value Of Derivative Liability
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237000000 USD
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DerivativeLiabilityFairValueGrossAsset
209000000 USD
CY2019Q2 us-gaap Derivative Liabilities
DerivativeLiabilities
28000000 USD
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DerivativeCollateralRightToReclaimSecurities
0 USD
CY2019Q2 us-gaap Derivative Collateral Right To Reclaim Cash
DerivativeCollateralRightToReclaimCash
6000000 USD
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22000000 USD
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140000000 USD
CY2019Q2 dell Derivative Asset Liability Fair Value Gross Liability
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140000000 USD
CY2019Q2 dell Derivative Collateral Obligation To Return Right To Reclaim Securities
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146000000 USD
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312000000 USD
CY2019Q1 us-gaap Derivative Asset Fair Value Gross Liability
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215000000 USD
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DerivativeAssets
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CY2019Q1 us-gaap Derivative Collateral Obligation To Return Securities
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CY2019Q1 us-gaap Derivative Collateral Obligation To Return Cash
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CY2019Q1 us-gaap Derivative Fair Value Of Derivative Asset Amount Offset Against Collateral
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CY2019Q1 us-gaap Derivative Fair Value Of Derivative Liability
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275000000 USD
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DerivativeLiabilityFairValueGrossAsset
215000000 USD
CY2019Q1 us-gaap Derivative Liabilities
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60000000 USD
CY2019Q1 us-gaap Derivative Collateral Right To Reclaim Securities
DerivativeCollateralRightToReclaimSecurities
0 USD
CY2019Q1 us-gaap Derivative Collateral Right To Reclaim Cash
DerivativeCollateralRightToReclaimCash
4000000 USD
CY2019Q1 us-gaap Derivative Fair Value Of Derivative Liability Amount Offset Against Collateral
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56000000 USD
CY2019Q1 dell Derivative Asset Liability Fair Value Gross Asset
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37000000 USD
CY2019Q1 dell Derivative Asset Liability Fair Value Gross Liability
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CY2019Q1 us-gaap Derivative Assets Liabilities At Fair Value Net
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CY2019Q1 dell Derivative Collateral Obligation To Return Right To Reclaim Securities
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CY2019Q1 dell Derivative Collateral Obligation To Return Right To Reclaim Cash
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41000000 USD
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33000000 USD
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CY2019Q2 us-gaap Goodwill
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40015000000 USD
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39753000000 USD
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22560000000 USD
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17193000000 USD
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39870000000 USD
CY2019Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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21355000000 USD
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FiniteLivedIntangibleAssetsNet
18515000000 USD
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22560000000 USD
CY2019Q2 us-gaap Intangible Assets Net Excluding Goodwill
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20948000000 USD
CY2019Q1 us-gaap Intangible Assets Gross Excluding Goodwill
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CY2019Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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21355000000 USD
CY2019Q1 us-gaap Intangible Assets Net Excluding Goodwill
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22270000000 USD
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1200000000 USD
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1500000000 USD
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17193000000 USD
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3172000000 USD
CY2019Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
3360000000 USD
CY2019Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
2649000000 USD
CY2019Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
1762000000 USD
CY2019Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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1399000000 USD
CY2019Q2 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
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4851000000 USD
CY2019Q1 us-gaap Contract With Customer Liability
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CY2018Q1 us-gaap Contract With Customer Liability
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4900000000 USD
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4325000000 USD
CY2019Q2 us-gaap Contract With Customer Liability Revenue Recognized
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CY2018Q2 us-gaap Contract With Customer Liability Revenue Recognized
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CY2019Q2 us-gaap Contract With Customer Liability
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CY2018Q2 us-gaap Contract With Customer Liability
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CY2019Q2 us-gaap Contract With Customer Liability Current
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CY2018Q2 us-gaap Contract With Customer Liability Current
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CY2018Q2 us-gaap Contract With Customer Liability Noncurrent
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CY2019Q2 us-gaap Revenue Remaining Performance Obligation
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31000000000 USD
CY2019Q2 us-gaap Revenue Remaining Performance Obligation Percentage
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0.62
CY2019Q2 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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P12M
CY2019Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
3.301
CY2018Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.136
CY2019Q2 us-gaap Income Loss Including Portion Attributable To Noncontrolling Interest
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CY2018Q2 us-gaap Income Loss Including Portion Attributable To Noncontrolling Interest
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CY2018Q2 dell Effective Income Tax Rate Reconciliation Adoption Of New Accounting Standard
EffectiveIncomeTaxRateReconciliationAdoptionOfNewAccountingStandard
154000000 USD
CY2019Q2 dell Effective Income Tax Rate Reconciliation Intra Entity Asset Transfer
EffectiveIncomeTaxRateReconciliationIntraEntityAssetTransfer
405000000 USD
CY2019Q2 dell Effective Income Tax Rate Reconciliation Intellectual Property Transfer
EffectiveIncomeTaxRateReconciliationIntellectualPropertyTransfer
4500000000 USD
CY2019Q2 dell Unrecognized Tax Benefitsand Income Tax Penaltiesand Interest Accrued
UnrecognizedTaxBenefitsandIncomeTaxPenaltiesandInterestAccrued
3400000000 USD
CY2019Q2 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
1000000 USD
CY2019Q2 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
58000000 USD
CY2019Q2 dell Other Comprehensive Income Loss Netof Taxand Cumulative Effectof New Accounting Principlein Periodof Adoption
OtherComprehensiveIncomeLossNetofTaxandCumulativeEffectofNewAccountingPrincipleinPeriodofAdoption
-57000000 USD
CY2019Q2 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToNoncontrollingInterest
1000000 USD
CY2019Q2 us-gaap Net Income Loss
NetIncomeLoss
293000000 USD
CY2019Q2 us-gaap Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Changes Issuance Of Equity By Subsidiary To Noncontrolling Interests
ConsolidationLessThanWhollyOwnedSubsidiaryParentOwnershipInterestChangesIssuanceOfEquityBySubsidiaryToNoncontrollingInterests
204000000 USD
CY2019Q2 dell Consolidation Lessthan Wholly Owned Subsidiary Parent Ownership Interest Changes Other
ConsolidationLessthanWhollyOwnedSubsidiaryParentOwnershipInterestChangesOther
-600000000 USD
CY2019Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
721000000 shares
CY2019Q2 us-gaap Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Changes Net
ConsolidationLessThanWhollyOwnedSubsidiaryParentOwnershipInterestChangesNet
-396000000 USD
CY2019Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2019Q2 us-gaap Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Change Due To Net Income Attributable To Parent And Effects Of Changes Net
ConsolidationLessThanWhollyOwnedSubsidiaryParentOwnershipInterestChangeDueToNetIncomeAttributableToParentAndEffectsOfChangesNet
-103000000 USD
CY2019Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
719000000 shares
CY2019Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2019Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2019Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2019Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
9143000000 shares
CY2019Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
721000000 shares
CY2019Q2 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
719000000 shares
CY2019Q1 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
9143000000 shares
CY2019Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2018Q4 dell Common Stock Numberof Groups
CommonStockNumberofGroups
2 common_stock_group
CY2019Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.41
CY2019Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.38
CY2019Q2 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
293000000 USD
CY2019Q2 us-gaap Dilutive Securities Effect On Basic Earnings Per Share Other
DilutiveSecuritiesEffectOnBasicEarningsPerShareOther
-8000000 USD
CY2019Q2 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
285000000 USD
CY2019Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
717000000 shares
CY2019Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
34000000 shares
CY2019Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
751000000 shares
CY2019Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6000000 shares
CY2018Q2 us-gaap Net Income Loss
NetIncomeLoss
-636000000 USD
CY2019Q2 us-gaap Temporary Equity Carrying Amount Attributable To Parent
TemporaryEquityCarryingAmountAttributableToParent
1774000000 USD
CY2019Q1 us-gaap Temporary Equity Carrying Amount Attributable To Parent
TemporaryEquityCarryingAmountAttributableToParent
1196000000 USD
CY2019Q2 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
3 segments
CY2019Q2 us-gaap Revenues
Revenues
21908000000 USD
CY2018Q2 us-gaap Revenues
Revenues
21356000000 USD
CY2019Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
550000000 USD
CY2018Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-153000000 USD
CY2019Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
9040000000 USD
CY2019Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
9676000000 USD
CY2019Q2 us-gaap Restricted Cash Current
RestrictedCashCurrent
629000000 USD
CY2019Q1 us-gaap Restricted Cash Current
RestrictedCashCurrent
522000000 USD
CY2019Q2 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
40000000 USD
CY2019Q1 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
42000000 USD
CY2019Q2 us-gaap Cash And Cash Equivalents At Carrying Value Including Discontinued Operations
CashAndCashEquivalentsAtCarryingValueIncludingDiscontinuedOperations
9709000000 USD
CY2019Q1 us-gaap Cash And Cash Equivalents At Carrying Value Including Discontinued Operations
CashAndCashEquivalentsAtCarryingValueIncludingDiscontinuedOperations
10240000000 USD
CY2019Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
1138000000 USD
CY2019Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
0 USD
CY2019Q2 us-gaap Other Sundry Liabilities Noncurrent
OtherSundryLiabilitiesNoncurrent
537000000 USD
CY2019Q1 us-gaap Other Sundry Liabilities Noncurrent
OtherSundryLiabilitiesNoncurrent
631000000 USD
CY2019Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
6525000000 USD
CY2019Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
6327000000 USD
CY2019Q2 us-gaap Inventory Raw Materials And Supplies Net Of Reserves
InventoryRawMaterialsAndSuppliesNetOfReserves
1561000000 USD
CY2019Q1 us-gaap Inventory Raw Materials And Supplies Net Of Reserves
InventoryRawMaterialsAndSuppliesNetOfReserves
1794000000 USD
CY2019Q2 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
722000000 USD
CY2019Q1 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
702000000 USD
CY2019Q2 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
1077000000 USD
CY2019Q1 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
1153000000 USD
CY2019Q2 us-gaap Inventory Net
InventoryNet
3360000000 USD
CY2019Q1 us-gaap Inventory Net
InventoryNet
3649000000 USD
CY2019Q2 us-gaap Standard Product Warranty Accrual Noncurrent
StandardProductWarrantyAccrualNoncurrent
162000000 USD
CY2019Q1 us-gaap Standard Product Warranty Accrual Noncurrent
StandardProductWarrantyAccrualNoncurrent
169000000 USD
CY2019Q2 us-gaap Deferred Income Tax Liabilities Net
DeferredIncomeTaxLiabilitiesNet
4688000000 USD
CY2019Q1 us-gaap Deferred Income Tax Liabilities Net
DeferredIncomeTaxLiabilitiesNet
5527000000 USD
CY2019Q1 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
524000000 USD
CY2018Q1 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
539000000 USD
CY2019Q2 dell Standard Product Warranty Accrual Increase For Warranties Issued Increase Decreasefor Preexisting Warranties And Foreign Currency Translation Gain Loss
StandardProductWarrantyAccrualIncreaseForWarrantiesIssuedIncreaseDecreaseforPreexistingWarrantiesAndForeignCurrencyTranslationGainLoss
203000000 USD
CY2018Q2 dell Standard Product Warranty Accrual Increase For Warranties Issued Increase Decreasefor Preexisting Warranties And Foreign Currency Translation Gain Loss
StandardProductWarrantyAccrualIncreaseForWarrantiesIssuedIncreaseDecreaseforPreexistingWarrantiesAndForeignCurrencyTranslationGainLoss
194000000 USD
CY2019Q2 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
227000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
206000000 USD
CY2019Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
500000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
527000000 USD
CY2019Q2 us-gaap Standard Product Warranty Accrual Current
StandardProductWarrantyAccrualCurrent
338000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual Current
StandardProductWarrantyAccrualCurrent
358000000 USD
CY2019Q2 us-gaap Standard Product Warranty Accrual Noncurrent
StandardProductWarrantyAccrualNoncurrent
162000000 USD
CY2018Q2 us-gaap Standard Product Warranty Accrual Noncurrent
StandardProductWarrantyAccrualNoncurrent
169000000 USD

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