SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF DENALI
The following tables present Denali’s selected historical consolidated financial data. On October 29, 2013, Denali acquired Dell in a transaction referred to as the going-private transaction. For the purposes of the consolidated financial data included in this proxy statement/prospectus for Denali, periods prior to October 29, 2013 reflect the financial position, results of operations and changes in financial position of Dell and its consolidated subsidiaries prior to the going-private transaction, referred to as the Predecessor, and periods beginning on or after October 29, 2013 reflect the financial position, results of operations and changes in financial position of Denali and its consolidated subsidiaries as a result of the going-private transaction, referred to as the Successor. For more information on the predecessor and successor periods, see Note 1 of the Notes to the Audited Consolidated Financial Statements of Denali.
The consolidated balance sheet data as of January 29, 2016 and January 30, 2015 and the results of operations and cash flow data for the fiscal years ended January 29, 2016 and January 30, 2015, the successor period October 29, 2013 to January 31, 2014, and the predecessor period February 2, 2013 to October 28, 2013 have been derived from Denali’s Audited Consolidated Financial Statements included elsewhere in this proxy statement/prospectus. The consolidated balance sheet data as of January 31, 2014 has been derived from Denali’s Audited Consolidated Financial Statements for the fiscal year then ended, which are not included or incorporated by reference herein. The consolidated balance sheet data as of February 1, 2013 and February 3, 2012 and the results of operations and cash flow data for the fiscal years ended February 1, 2013 and February 3, 2012 have been derived from Dell’s audited financial statements included in Dell’s Annual Report on Form 10-K for the year ended February 1, 2013 filed with the SEC and is not included or incorporated by reference herein.
The selected historical consolidated financial data presented below is not necessarily indicative of the results to be expected for any future period. The selected historical consolidated financial data does not reflect the capital structure of the combined company following the completion of the merger and related financings and is not indicative of results that would have been reported had such transactions occurred as of the dates indicated. The selected historical consolidated financial data presented below should be read in conjunction with Denali’s Audited Consolidated Financial Statements and accompanying notes and the “Denali Unaudited Pro Forma Condensed Combined Financial Statements,” as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Denali,” included elsewhere in this proxy statement/prospectus.
| Successor | Predecessor | |||||||||||||||||||||||||
| Fiscal Year Ended January 29, 2016 |
Fiscal Year Ended January 30, 2015 |
October 29, 2013 to January 31, 2014 |
February 2, 2013 to October 28, 2013 |
Fiscal Year Ended February 1, 2013 |
Fiscal Year Ended February 3, 2012(a) |
|||||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||||||||||
| Results of Operations and Cash Flow Data: |
||||||||||||||||||||||||||
| Net revenue |
$ | 54,886 | $ | 58,119 | $ | 14,075 | $ | 42,302 | $ | 56,940 | $ | 62,071 | ||||||||||||||
| Gross margin |
$ | 9,832 | $ | 10,208 | $ | 1,393 | $ | 7,991 | $ | 12,186 | $ | 13,811 | ||||||||||||||
| Operating income (loss) |
$ | (383 | ) | $ | (422 | ) | $ | (1,798 | ) | $ | 518 | $ | 3,012 | $ | 4,431 | |||||||||||
| Income (loss) before income taxes |
$ | (1,175 | ) | $ | (1,346 | ) | $ | (2,002 | ) | $ | 320 | $ | 2,841 | $ | 4,240 | |||||||||||
| Net income (loss) |
$ | (1,104 | ) | $ | (1,221 | ) | $ | (1,612 | ) | $ | (93 | ) | $ | 2,372 | $ | 3,492 | ||||||||||
| Earnings (loss) per common share: |
||||||||||||||||||||||||||
| Basic |
$ | (2.73 | ) | $ | (3.02 | ) | $ | (4.06 | ) | $ | (0.05 | ) | $ | 1.36 | $ | 1.90 | ||||||||||
| Diluted |
$ | (2.73 | ) | $ | (3.02 | ) | $ | (4.06 | ) | $ | (0.05 | ) | $ | 1.35 | $ | 1.88 | ||||||||||
| Number of weighted-average shares outstanding: |
||||||||||||||||||||||||||
| Basic |
405 | 404 | 397 | 1,755 | 1,745 | 1,838 | ||||||||||||||||||||
| Diluted |
405 | 404 | 397 | 1,755 | 1,755 | 1,853 | ||||||||||||||||||||
| Net cash provided by operating activities |
$ | 2,162 | $ | 2,551 | $ | 1,082 | $ | 1,604 | $ | 3,283 | $ | 5,527 | ||||||||||||||
| (a) | The fiscal year ended February 3, 2012 included 53 weeks. |
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The following table presents Denali’s selected historical consolidated balance sheet information as of the dates indicated:
| Successor | Predecessor | |||||||||||||||||||||
| January 29, 2016 |
January 30, 2015 |
January 31, 2014 |
February 1, 2013 |
February 3, 2012 |
||||||||||||||||||
| (in millions) | ||||||||||||||||||||||
| Balance Sheet Data: |
||||||||||||||||||||||
| Cash and cash equivalents |
$ | 6,576 | $ | 5,398 | $ | 6,449 | $ | 12,569 | $ | 13,852 | ||||||||||||
| Total assets |
$ | 45,250 | $ | 48,192 | $ | 51,153 | $ | 47,540 | $ | 44,533 | ||||||||||||
| Short-term debt |
$ | 2,984 | $ | 2,921 | $ | 3,063 | $ | 3,843 | $ | 2,867 | ||||||||||||
| Long-term debt |
$ | 10,775 | $ | 11,234 | $ | 14,352 | $ | 5,242 | $ | 6,387 | ||||||||||||
| Total stockholders’ equity |
$ | 1,466 | $ | 2,904 | $ | 4,014 | $ | 10,701 | $ | 8,917 | ||||||||||||
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