Segment Information (Notes)

9 Months Ended

Nov. 02, 2012

Segment Reporting [Abstract]

Segment Information

NOTE 14 — SEGMENT INFORMATION

The business segments disclosed in the accompanying Condensed Consolidated Financial Statements are based on information reviewed by Dell's management to evaluate the business segment results. Dell's measure of segment operating income for management reporting purposes excludes severance and facility action costs and acquisition-related charges, broad based long-term incentives, and amortization of intangible assets.

Dell's four global business segments are Large Enterprise, Public, Small and Medium Business (“SMB”), and Consumer. Large Enterprise includes sales of IT infrastructure and service solutions to large global and national corporate customers. Public includes sales to educational institutions, governments, health care organizations, and law enforcement agencies, among others. SMB includes sales of complete IT solutions to small and medium-sized businesses. Consumer includes sales to individual consumers and retailers around the world.

In the first quarter of Fiscal 2013, Dell made certain segment realignments in order to conform to the way Dell now internally manages segment performance.  These realignments affected all of Dell's operating segments, but primarily consisted of the transfer of small office business customers from its SMB operating segment to its Consumer segment.  Dell has recast prior period amounts to provide visibility and comparability.  None of these changes impact Dell's previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share.

The following table presents net revenue by Dell's reportable global segments as well as a reconciliation of consolidated segment operating income to Dell's consolidated operating income:

	Three Months Ended						Nine Months Ended
	November 2, 2012			October 28, 2011			November 2, 2012			October 28, 2011
	(in millions)
Net revenue:
Large Enterprise	$	4,156		$	4,540		$	13,128		$	13,804
Public	3,824			4,287			11,355			12,237
Small and Medium Business	3,282			3,326			10,017			9,987
Consumer	2,459			3,212			8,126			10,012
Total	$	13,721		$	15,365		$	42,626		$	46,040
Consolidated operating income:
Large Enterprise	$	325		$	446		$	1,160		$	1,422
Public	352			454			1,002			1,272
Small and Medium Business	349			367			1,120			1,182
Consumer	(65		)	99			(19		)	372
Segment operating income	961			1,366			3,263			4,248
Broad based long-term incentives(a)	(75		)	(78		)	(244		)	(256		)
Amortization of intangible assets	(165		)	(100		)	(425		)	(287		)
Severance and facility actions and acquisition-related costs (a)(b)	(132		)	(46		)	(280		)	(205		)
Total	$	589		$	1,142		$	2,314		$	3,500

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^(a)  Broad based long-term incentives includes stock-based compensation and other long-term incentive awards.

^(b)  Acquisition-related costs consist primarily of retention payments, integration costs, and consulting fees.