Dell Technologies(US:DELL)2025-03-25 20:21Financial Transactions - Secureworks was sold to Sophos Inc. for approximately $0.9 billion in an all-cash transaction, completed on February 3, 2025[29]. - Dell Financial Services funded $8.4 billion of originations in Fiscal 2025 and maintains an $11.2 billion global portfolio of financing receivables[32]. - Dell Technologies' borrowings exposed to interest rate fluctuations were $2.6 billion as of January 31, 2025, relative to total borrowings of $24.6 billion[375]. - A 100 basis point increase in interest rates would have resulted in an increase of approximately $26 million in annual interest expense based on the debt outstanding as of January 31, 2025[375]. - As of February 2, 2024, borrowings exposed to interest rate fluctuations were $3.3 billion relative to total borrowings of $26.0 billion[376]. - A 100 basis point increase in interest rates would have resulted in an increase of approximately $33 million in annual interest expense based on the debt outstanding as of February 2, 2024[376]. Research and Development - Total R&D expenses for Dell amounted to $3.1 billion in Fiscal 2025, an increase from $2.8 billion in both Fiscal 2024 and Fiscal 2023[35]. Patents and Intellectual Property - As of January 31, 2025, Dell held a worldwide portfolio of 24,351 granted patents and 8,424 pending patent applications[56]. Workforce and Employee Development - As of January 31, 2025, Dell Technologies had approximately 108,000 employees, with ongoing efforts to manage costs and align investments with strategic priorities resulting in a reduction in overall headcount[67]. - The company has implemented a comprehensive benefits package to support employees' overall health and well-being, emphasizing mental, physical, emotional, and financial wellness[73]. - Dell Technologies has a structured approach to employee development, offering training, mentorship, and career growth opportunities to build a leadership pipeline[71]. - The company is committed to equal employment opportunity and inclusive policies, aiming to create a diverse workforce that drives innovation and growth[69]. Sustainability and Environmental Commitment - Dell Technologies aims to achieve net zero emissions across scopes 1, 2, and 3 by 2050, actively managing greenhouse gas emissions across operations, supply chain, and product lifecycle[64]. - The company is committed to a circular economy, integrating sustainable practices with suppliers and stakeholders to improve resource efficiency and environmental benefits[64]. - Dell Technologies continuously measures and shares updates on its sustainability progress through annual reports available on its website[65]. Risk Management - Dell Technologies employs established policies and procedures to manage market risks, including foreign currency exchange rate fluctuations and interest rate changes[369]. - The company monitors its foreign currency exchange exposures to ensure the overall effectiveness of its foreign currency hedge positions[370]. - Dell Technologies utilizes foreign currency option contracts and forward contracts to hedge its exposure on forecasted transactions and firm commitments for certain currencies[370]. - The maximum potential one-day loss in fair value at a 95% confidence level for foreign currency hedge instruments was approximately $9 million as of January 31, 2025[371]. Business Strategy and Market Position - Approximately 50% of Dell's net revenue in Fiscal 2025 was generated through other sales channels[53]. - The product backlog for AI-optimized servers remained elevated due to strong demand as the fiscal year ended[44]. - Dell held strategic investments in non-marketable securities valued at $1.5 billion as of January 31, 2025[37]. - Strategic investments in non-marketable securities amounted to $1.5 billion as of January 31, 2025, compared to $1.3 billion as of February 2, 2024[378]. Corporate Governance and Ethics - The company emphasizes the importance of trust, prioritizing security, privacy, and ethics in all business aspects to foster stakeholder confidence[72]. - Dell Technologies conducts audits of its supply chain to ensure adherence to the Responsible Business Alliance Code of Conduct, covering labor, health and safety, environment, ethics, and management systems[76]. - Dell Technologies focuses on digital inclusion, working to close the digital divide by providing access to technology solutions that enhance quality of life[64].