SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

6 Months Ended

Jul. 30, 2021

Condensed Financial Information Disclosure [Abstract]

SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

NOTE 17 — SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

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

	July 30, 2021		January 29, 2021
	(in millions)
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	11,719	$	14,201
Restricted cash - other current assets (a)	827		891
Restricted cash - other non-current assets (a)	81		92
Total cash, cash equivalents, and restricted cash	$	12,627	$	15,184
Inventories, net:
Production materials	$	2,332	$	1,717
Work-in-process	775		677
Finished goods	1,116		1,008
Total inventories, net	$	4,223	$	3,402
Property, plant, and equipment, net:
Computer equipment	7,134		6,506
Land and buildings	4,720		4,745
Machinery and other equipment	4,076		3,933
Total property, plant, and equipment	15,930		15,184
Accumulated depreciation and amortization	(9,269)		(8,753)
Total property, plant, and equipment, net	6,661		6,431
Other non-current assets:
Deferred and other tax assets	$	6,397	$	6,230
Operating lease right of use assets	2,044		2,117
Deferred commissions	1,145		1,094
Other	1,916		1,755
Total other non-current assets	$	11,502	$	11,196

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(a)    Restricted cash primarily includes cash required to be held in escrow pursuant to DFS securitization arrangements.

Trade Receivables — Allowance for Expected Credit Losses

The following table presents the changes in the Company’s allowance for expected credit losses for the periods indicated:

	Three Months Ended				Six Months Ended
	July 30, 2021		July 31, 2020		July 30, 2021		July 31, 2020
	(in millions)
Trade Receivables — Allowance for expected credit losses:
Balance at beginning of period	$	104	$	144	$	104	$	94
Adjustment for adoption of accounting standard (a)	—		—		—		27
Allowance charged to provision	3		11		13		47
Bad debt write-offs	(9)		(9)		(19)		(22)
Balance at end of period	$	98	$	146	$	98	$	146

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(a)The Company adopted the current expected credit losses standard as of February 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment to the opening balance of stockholders’ equity (deficit) as of the adoption date.

Warranty Liability

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

	Three Months Ended				Six Months Ended
	July 30, 2021		July 31, 2020		July 30, 2021		July 31, 2020
	(in millions)
Warranty liability:
Warranty liability at beginning of period	$	458	$	476	$	473	$	496
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b)	241		206		443		354
Service obligations honored	(228)		(203)		(445)		(371)
Warranty liability at end of period	$	471	$	479	$	471	$	479
Current portion	$	353	$	339	$	353	$	339
Non-current portion	$	118	$	140	$	118	$	140

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(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 Condensed Consolidated Statements of Financial Position. The following table presents the activity related to the Company’s severance liability for the periods indicated:

	Three Months Ended				Six Months Ended
	July 30, 2021		July 31, 2020		July 30, 2021		July 31, 2020
	(in millions)
Severance liability:
Severance liability at beginning of period	$	94	$	126	$	138	$	196
Severance charges to provision	80		93		110		191
Cash paid and other (a)	(48)		(51)		(122)		(219)
Severance liability at end of period	$	126	$	168	$	126	$	168

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

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

	Three Months Ended				Six Months Ended
	July 30, 2021		July 31, 2020		July 30, 2021		July 31, 2020
	(in millions)
Severance charges:
Cost of net revenue	$	9	$	2	$	22	$	12
Selling, general, and administrative	69		88		83		169
Research and development	2		3		5		10
Total severance charges	$	80	$	93	$	110	$	191

Interest and Other, Net

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

	Three Months Ended				Six Months Ended
	July 30, 2021		July 31, 2020		July 30, 2021		July 31, 2020
	(in millions)
Interest and other, net:
Investment income, primarily interest	$	10	$	12	$	21	$	36
Gain on investments, net	168		8		325		102
Interest expense	(483)		(617)		(993)		(1,289)
Foreign exchange	(64)		—		(113)		(99)
Other	10		(39)		13		48
Total interest and other, net	$	(359)	$	(636)	$	(747)	$	(1,202)