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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables)

12 Months Ended

Jan. 29, 2021

Condensed Financial Information Disclosure [Abstract]

The following table presents additional information on selected asset accounts included in the Consolidated Statements of Financial Position as of the dates indicated:


	January 29, 2021		January 31, 2020
	(in millions)
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	14,201	$	9,302
Restricted cash - other current assets (a)	891		730
Restricted cash - other non-current assets (a)	92		119
Total cash, cash equivalents, and restricted cash	$	15,184	$	10,151
Inventories, net:
Production materials	$	1,717	$	1,590
Work-in-process	677		563
Finished goods	1,008		1,128
Total inventories, net	$	3,402	$	3,281
Prepaid expenses:
Total prepaid expenses (b)	$	887	$	885
Property, plant, and equipment, net:
Computer equipment	$	6,506	$	6,330
Land and buildings	4,745		4,700
Machinery and other equipment	3,933		3,597
Total property, plant, and equipment	15,184		14,627
Accumulated depreciation and amortization (c)	(8,753)		(8,572)
Total property, plant, and equipment, net	$	6,431	$	6,055
Other non-current assets:
Deferred and other tax assets	$	6,230	$	5,960
Operating lease ROU assets	2,117		1,780
Deferred Commissions	1,094		998
Other	1,755		1,690
Total other non-current assets	$	11,196	$	10,428

____________________

(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 29, 2021, January 31, 2020, and February 1, 2019, the Company recognized $1.6 billion, $1.3 billion, and $1.3 billion, respectively, in depreciation expense. Additionally, during the fiscal years ended January 29, 2021, January 31, 2020, and February 1, 2019, the Company retired $1.4 billion, $0.8 billion, and $0.8 billion, respectively, of 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 29, 2021		January 31, 2020
	(in millions)
Accrued and other current liabilities:
Compensation	$	3,818	$	3,717
Income and other taxes	1,621		1,767
Sales and marketing programs	1,526		1,387
Operating lease liabilities	436		432
Warranty liability	356		341
Other	1,792		2,129
Total accrued and other current liabilities	$	9,549	$	9,773
Other non-current liabilities:
Deferred and other tax liabilities	$	2,173	$	3,110
Operating lease liabilities	1,787		1,360
Warranty liability	117		155
Other	1,283		758
Total other non-current liabilities	$	5,360	$	5,383

Valuation and qualifying accounts

The following table presents the Company’s valuation and qualifying accounts for the periods indicated:


	Fiscal Year Ended
	January 29, 2021		January 31, 2020		February 1, 2019
	(in millions)
Trade Receivables — Allowance for expected credit losses:
Balance at beginning of period	$	94	$	85	$	103
Adjustment for adoption of the new CECL standard (Note 2)	27		—		—

Provision charged to income statement	45		71		77
Bad debt write-offs	(62)		(62)		(95)
Balance at end of period	$	104	$	94	$	85

Customer Financing Receivables — Allowance for financing receivable losses:
Balance at beginning of period	$	149	$	136	$	145
Adjustment for adoption of the new CECL standard (Note 2)	111		—		—
Charge-offs, net of recoveries (a)	(91)		(94)		(104)
Provision charged to income statement	152		107		95
Balance at end of period	$	321	$	149	$	136

Tax Valuation Allowance:
Balance at beginning of period	$	1,687	$	1,704	$	777
Charged to income tax provision	80		32		927
Charged to other accounts	(58)		(49)		—
Balance at end of period	$	1,709	$	1,687	$	1,704

____________________

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

Liability for standard limited warranties

The following table presents changes in the Company’s liability for standard limited warranties for the periods indicated:


	Fiscal Year Ended
		January 29, 2021		January 31, 2020		February 1, 2019
		(in millions)
Warranty liability:
Warranty liability at beginning of period		$	496	$	524	$	539
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b)		782		853		856
Service obligations honored		(805)		(882)		(871)
Warranty liability at end of period		$	473	$	496	$	524
Current portion		$	356	$	341	$	355
Non-current portion		$	117	$	155	$	169

____________________

(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.

Activity related to severance liability

The following table presents the activity related to the Company’s severance liability for the periods indicated:


	Fiscal Year Ended
		January 29, 2021		January 31, 2020		February 1, 2019
		(in millions)
Severance liability:
Severance liability at beginning of period		$	196	$	146	$	175
Severance charges to provision		452		266		215
Cash paid and other (a)		(510)		(216)		(244)
Severance liability at end of period		$	138	$	196	$	146

____________________

(a) Other adjustments include the impact of foreign currency exchange rate fluctuations.

Severance charges

The following table presents severance charges as included in the Consolidated Statements of Income (Loss) for the periods indicated:


	Fiscal Year Ended
	January 29, 2021		January 31, 2020		February 1, 2019
	(in millions)
Severance charges:
Cost of net revenue	$	68	$	37	$	17
Selling, general, and administrative	313		177		146
Research and development	71		52		52
Total severance charges	$	452	$	266	$	215

Interest and other, net

The following table presents information regarding interest and other, net for the periods indicated:


	Fiscal Year Ended
	January 29, 2021		January 31, 2020		February 1, 2019
	(in millions)
Interest and other, net:
Investment income, primarily interest	$	54	$	160	$	313
Gain on strategic investments, net (a)	582		194		342
Interest expense	(2,389)		(2,675)		(2,488)
Foreign exchange	(127)		(162)		(206)
Other (b)	406		(143)		(131)
Total interest and other, net	$	(1,474)	$	(2,626)	$	(2,170)

____________________

(a) Gain on strategic investments, net includes a $396 million net gain on the fair value adjustment of one of the Company’s strategic investments during the fiscal year ended January 29, 2021.

(b) Other includes a pre-tax gain of $338 million on the sale of RSA Security and a gain of $120 million recognized from the sale of certain intellectual property assets during the fiscal year ended January 29, 2021.