DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jul. 29, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

The following table presents key financial results of Dell Services included in “Income (loss) from discontinued operations, net of income taxes” for the three and six months ended July 29, 2016 and July 31, 2015:

	Three Months Ended					Six Months Ended
	July 29, 2016			July 31, 2015		July 29, 2016			July 31, 2015
	(in millions)
Net revenue	$	694		$	694	$	1,368		$	1,394
Cost of net revenue	536			546		1,077			1,138
Operating expenses	98			105		211			207
Income from discontinued operations before income taxes	60			43		80			49
Income tax provision (benefit) (a)	(453		)	14		(914		)	48
Income from discontinued operations, net of income taxes	$	513		$	29	$	994		$	1

____________________

(a) The tax benefits recorded during the three and six months ended July 29, 2016 were $0.5 billion and $0.9 billion, respectively. The additional tax benefit recorded in the three months ended July 29, 2016 was primarily due to the reversal of a valuation allowance for deferred tax assets that the Company now expects to utilize as a result of the DSG divestiture.

The following table presents key financial results of DSG included in “Income (loss) from discontinued operations, net of income taxes” for the three and six months ended July 29, 2016 and July 31, 2015:

	Three Months Ended						Six Months Ended
	July 29, 2016			July 31, 2015			July 29, 2016			July 31, 2015
	(in millions)
Net revenue	$	321		$	330		$	642		$	643
Cost of net revenue	85			89			175			185
Operating expenses	239			220			488			461
Interest and other, net	(7		)	(2		)	7			(6		)
Income (loss) from discontinued operations before income taxes	(10		)	19			(14		)	(9		)
Income tax provision (benefit) (a)	(333		)	21			(337		)	23
Income (loss) from discontinued operations, net of income taxes	$	323		$	(2	)	$	323		$	(32	)

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(a) The tax benefits of $333 million and $337 million for the three and six months ended July 29, 2016, respectively, were primarily due to the Company's determination that it could no longer assert permanent reinvestment in the outside basis of the entities that will be divested.

The following table presents the major classes of assets and liabilities as of July 29, 2016 and January 29, 2016 related to DSG which were classified as held for sale:

	July 29, 2016		January 29, 2016
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	147	$	254
Accounts receivable, net	210		244
Inventories, net	20		24
Other current assets	9		11
Total current assets	386		533
Property, plant, and equipment, net	111		106
Goodwill	1,391		1,391
Intangible assets, net	557		613
Other non-current assets (a)	10		8
Total assets	$	2,455	$	2,651
LIABILITIES
Current liabilities:
Accounts payable	20		15
Accrued and other	124		160
Short-term deferred revenue	603		625
Total current liabilities	747		800
Long-term deferred revenue	340		333
Other non-current liabilities (a)	79		82
Total liabilities	$	1,166	$	1,215

____________________

(a) Other non-current liabilities includes a $75 million deferred tax liability as of July 29, 2016 that is reflected in current assets held for sale on the Condensed Consolidated Statements of Financial Position due to jurisdictional netting of deferred taxes.

The significant cash flow items from DSG for the six months ended July 29, 2016 and July 31, 2015 were as follows:

	Six Months Ended
	July 29, 2016			July 31, 2015
	(in millions)
Depreciation and amortization (a)	$	66		$	83
Capital expenditures	$	(15	)	$	(15	)

____________________

(a) Amounts represent depreciation and amortization recognized up until June 19, 2016, the date DSG met the criteria for discontinued operations reporting. Depreciation and amortization ceased upon determination that the held for sale criteria were met.

The significant cash flow items from Dell Services for the six months ended July 29, 2016 and July 31, 2015 were as follows:

	Six Months Ended
	July 29, 2016			July 31, 2015
	(in millions)
Depreciation and amortization (a)	$	32		$	110
Capital expenditures	$	(47	)	$	(41	)

____________________

(a) Amounts represent depreciation and amortization recognized up until March 27, 2016, the date Dell Services met the criteria for discontinued operations reporting. Depreciation and amortization ceased upon determination that the held for sale criteria were met.

The following table presents the major classes of assets and liabilities as of July 29, 2016 and January 29, 2016 related to Dell Services which were classified as held for sale:

	July 29, 2016		January 29, 2016
	(in millions)
ASSETS
Current assets:
Accounts receivable, net	$	488	$	443
Other current assets	68		73
Total current assets	556		516
Property, plant, and equipment, net	545		515
Goodwill	252		252
Intangible assets, net	376		388
Other non-current assets	16		50
Total assets	$	1,745	$	1,721
LIABILITIES
Current liabilities:
Accounts payable	$	147	$	173
Accrued and other	160		180
Short-term deferred revenue	77		82
Total current liabilities	384		435
Long-term deferred revenue	47		53
Other non-current liabilities	—		126
Total liabilities	$	431	$	614