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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION
 12 Months Ended
Jan. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION
NOTE 20 — SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

The following table presents additional information on selected asset accounts included in the Consolidated Statements of Financial Position as of the dates indicated:
 
January 31, 2020
 
February 1, 2019
 
(in millions)
Cash, cash equivalents, and restricted cash:
 
 
 
Cash and cash equivalents
$
9,302

 
$
9,676

Restricted cash - other current assets (a)
730

 
522

Restricted cash - other non-current assets (a)
119

 
42

Total cash, cash equivalents, and restricted cash
$
10,151

 
$
10,240

Accounts receivable, net:
 
 
 
Gross accounts receivable
$
12,578

 
$
12,456

Allowance for doubtful accounts
(94
)
 
(85
)
Total accounts receivable, net
$
12,484

 
$
12,371

Inventories, net:
 
 
 
Production materials
$
1,590

 
$
1,794

Work-in-process
563

 
702

Finished goods
1,128

 
1,153

Total inventories, net
$
3,281

 
$
3,649

Prepaid expenses:
 
 
 
Total prepaid expenses (b)
$
885

 
$
795

Property, plant, and equipment, net:
 
 
 
Computer equipment
$
6,330

 
$
5,219

Land and buildings
4,700

 
4,559

Machinery and other equipment
3,597

 
3,829

Total property, plant, and equipment
14,627

 
13,607

Accumulated depreciation and amortization (c)
(8,572
)
 
(8,348
)
Total property, plant, and equipment, net
$
6,055

 
$
5,259

Other non-current assets:
 
 
 
Deferred and other tax assets
$
5,960

 
$
654

Operating lease ROU assets
1,780

 
—

Deferred Commissions
998

 
817

Other
1,690

 
1,364

Total other non-current assets
$
10,428

 
$
2,835

____________________
(a)
Restricted cash includes cash required to be held in escrow pursuant to DFS securitization arrangements and VMware, Inc. restricted cash.
(b)
Prepaid expenses are included in other current assets in the Consolidated Statements of Financial Position.
(c)
During the fiscal years ended January 31, 2020, February 1, 2019, and February 2, 2018, the Company recognized $1.3 billion, $1.3 billion, and $1.5 billion, respectively, in depreciation expense. Additionally, during the fiscal years ended January 31, 2020, February 1, 2019, and February 2, 2018, the Company retired $0.8 billion, $0.8 billion, and $1.1 billion, respectively, of fully depreciated property, plant, and equipment.
The following table presents additional information on selected liability accounts included in the Consolidated Statements of Financial Position as of the dates indicated:
 
January 31, 2020
 
February 1, 2019
 
(in millions)
Accrued and other current liabilities:
 
 
 
Compensation
$
3,717

 
$
3,646

Income and other taxes
1,767

 
1,396

Sales and marketing programs
1,387

 
1,209

Operating lease liabilities
432

 
—

Warranty liability
341

 
355

Other
2,129

 
1,889

Total accrued and other current liabilities
$
9,773

 
$
8,495

Other non-current liabilities:
 
 
 
Deferred and other tax liabilities
$
3,110

 
$
5,527

Operating lease liabilities
1,360

 
—

Warranty liability
155

 
169

Other
758

 
631

Total other non-current liabilities
$
5,383

 
$
6,327



Valuation and Qualifying Accounts

The following table presents the Company’s valuation and qualifying accounts for the periods indicated:
 
Fiscal Year Ended
 
January 31, 2020
 
February 1, 2019
 
February 2, 2018
 
(in millions)
Trade Receivables - Allowance for doubtful accounts:
 
 
 
 
 
Balance at beginning of period
$
85

 
$
103

 
$
57

Provision charged to income statement
71

 
77

 
60

Bad debt write-offs
(62
)
 
(95
)
 
(14
)
Balance at end of period
$
94

 
$
85

 
$
103

 
 
 
 
 
 
Customer Financing Receivables - Allowance for financing receivable losses:
 
 
 
 
 
Balance at beginning of period
$
136

 
$
145

 
$
143

Provision charged to income statement
107

 
95

 
103

Charge-offs, net of recoveries (a)
(94
)
 
(104
)
 
(101
)
Balance at end of period
$
149

 
$
136

 
$
145

 
 
 
 
 
 
Tax Valuation Allowance:
 
 
 
 
 
Balance at beginning of period
$
1,704

 
$
777

 
$
709

Charged to income tax provision
32

 
927

 
68

Charged to other accounts
(49
)
 
—

 
—

Balance at end of period
$
1,687

 
$
1,704

 
$
777

____________________
(a)
Charge-offs for customer financing receivables includes principal and interest.
Warranty Liability

The following table presents changes in the Company’s liability for standard limited warranties for the periods indicated:
 
Fiscal Year Ended
 
January 31, 2020
 
February 1, 2019
 
February 2, 2018
 
(in millions)
Warranty liability:
 
 
 
 
 
Warranty liability at beginning of period
$
524

 
$
539

 
$
604

Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b)
853

 
856

 
905

Service obligations honored
(882
)
 
(871
)
 
(970
)
Warranty liability at end of period
$
496

 
$
524

 
$
539

Current portion
$
341

 
$
355

 
$
367

Non-current portion
$
155

 
$
169

 
$
172

____________________
(a)
Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. The Company’s warranty liability process does not differentiate between estimates made for pre-existing warranties and new warranty obligations.
(b)
Includes the impact of foreign currency exchange rate fluctuations.

Severance Charges

The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other current liabilities in the Consolidated Statements of Financial Position.

The following table presents the activity related to the Company’s severance liability for the periods indicated:
 
Fiscal Year Ended
 
January 31, 2020
 
February 1, 2019
 
February 2, 2018
 
(in millions)
Severance liability:
 
 
 
 
 
Severance liability at beginning of period
$
146

 
$
175

 
$
416

Severance charges to provision
266

 
215

 
159

Cash paid and other
(216
)
 
(244
)
 
(400
)
Severance liability at end of period
$
196

 
$
146

 
$
175



The following table presents severance charges as included in the Consolidated Statements of Income (Loss) for the periods indicated:
 
Fiscal Year Ended
 
January 31, 2020
 
February 1, 2019
 
February 2, 2018
 
(in millions)
Severance charges:
 
 
 
 
 
Cost of net revenue
$
37

 
$
17

 
$
46

Selling, general, and administrative
177

 
146

 
46

Research and development
52

 
52

 
67

Total severance charges
$
266

 
$
215

 
$
159



Interest and other, net

The following table presents information regarding interest and other, net for the periods indicated:
 
Fiscal Year Ended
 
January 31, 2020
 
February 1, 2019
 
February 2, 2018
 
(in millions)
Interest and other, net:
 
 
 
 
 
Investment income, primarily interest
$
160

 
$
313

 
$
207

Gain on investments, net
194

 
342

 
72

Interest expense
(2,675
)
 
(2,488
)
 
(2,406
)
Foreign exchange
(162
)
 
(206
)
 
(113
)
Other
(143
)
 
(131
)
 
(113
)
Total interest and other, net
$
(2,626
)
 
$
(2,170
)
 
$
(2,353
)