Segment Information (Notes)

12 Months Ended

Feb. 01, 2013

Segment Reporting [Abstract]

Segment Information

NOTE 15 — SEGMENT INFORMATION

Through Fiscal 2013, Dell managed its business in four global customer-centric operating segments: Large Enterprise, Public, Small and Medium Business, 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.

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

In the first quarter of Fiscal 2013, Dell made certain segment realignments in order to conform to the way Dell managed segment performance through Fiscal 2013.  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 impacts Dell's previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share.

On January 10, 2013, Dell announced its intention to replace its current segment reporting structure described above with the following four product and services business units in the first quarter of Fiscal 2014:

• End-User Computing Group (“EUC”)

• Enterprise Solutions Group (“ESG”)

• Dell Services

• Dell Software Group

EUC will include notebooks, desktop PCs, thin client products, tablets, third-party software, and client-related peripherals. ESG will include servers, networking, storage, converged infrastructure offerings, and ESG related peripherals. Dell Services will include a broad range of IT and business services, including support and deployment services, infrastructure, cloud, and security services, and applications and business process services. The Dell Software Group will include systems management, security, and information management.

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:

	Fiscal Year Ended
	February 1, 2013			February 3, 2012			January 28, 2011
	(in millions)
Net revenue:
Large Enterprise	$	17,781		$	18,786		$	18,111
Public	14,828			16,070			16,377
Small and Medium Business	13,413			13,547			12,608
Consumer	10,918			13,668			14,398
Total	$	56,940		$	62,071		$	61,494
Consolidated operating income:
Large Enterprise	$	1,553		$	1,889		$	1,490
Public	1,238			1,584			1,446
Small and Medium Business	1,505			1,581			1,383
Consumer	(11		)	433			180
Segment operating income	4,285			5,487			4,499
Broad based long-term incentives(a)	(312		)	(352		)	(350		)
Amortization of intangible assets	(613		)	(391		)	(349		)
Severance and facility actions and acquisition-related costs (a)(b)	(348		)	(313		)	(227		)
Other(c)	—			—			(140		)
Total	$	3,012		$	4,431		$	3,433

____________________ 

^(a)  Broad based long-term incentives include stock-based compensation and other long-term incentive awards. See Note 14 of the Notes to Consolidated Financial Statements for additional information.

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

^(c)  Other includes a $100 million settlement for an SEC investigation and a $40 million settlement for a securities litigation lawsuit that were both incurred in the first quarter of Fiscal 2011.

For Fiscal 2013, segment assets consisted primarily of accounts receivable, net. Prior to Fiscal 2013, Dell's segment assets also included inventories. However, beginning in the first quarter of Fiscal 2013, Dell no longer manages inventory by segment. The following table presents total assets by Dell's reportable segments:

	February 1, 2013		February 3, 2012 (a)
	(in millions)
Total segment assets:
Corporate	$	40,247	$	37,575
Large Enterprise	3,054		2,729
Public	1,940		1,873
Small and Medium Business	1,161		1,107
Consumer	1,138		1,249
Total	$	47,540	$	44,533

____________________ 

^(a)  Segment assets previously reported have been recast for the segment realignment discussed above. This segment realignment did not impact Dell's previously reported consolidated current assets or consolidated total assets.

The following table presents depreciation expense by Dell's reportable business segments:

	Fiscal Year Ended
	February 1, 2013		February 3, 2012		January 28, 2011
	(in millions)
Depreciation expense:
Large Enterprise	$	166	$	162	$	180
Public	138		145		170
Small and Medium Business	125		133		146
Consumer	102		105		125
Total	$	531	$	545	$	621

The following tables present net revenue and long-lived asset information allocated between the U.S. and foreign countries:

	Fiscal Year Ended
	February 1, 2013		February 3, 2012		January 28, 2011
	(in millions)
Net revenue:
United States	$	28,231	$	30,404	$	31,912
Foreign countries	28,709		31,667		29,582
Total	$	56,940	$	62,071	$	61,494

	February 1, 2013		February 3, 2012
	(in millions)
Long-lived assets:
United States	$	1,448	$	1,577
Foreign countries	678		547
Total	$	2,126	$	2,124

The allocation between domestic and foreign net revenue is based on the location of the customers. Net revenue and long-lived assets from any single foreign country did not constitute more than 10% of Dell's consolidated net revenues or long-lived assets during Fiscal 2013, Fiscal 2012, or Fiscal 2011.

The following table presents net revenue by product and services categories:

	Fiscal Year Ended
	February 1, 2013		February 3, 2012		January 28, 2011
	(in millions)
Net revenue:
Enterprise Solutions and Services:
Enterprise Solutions:
Servers and networking	$	9,294	$	8,336	$	7,609
Storage	1,699		1,943		2,295
Services	8,396		8,322		7,673
Third-party software and peripherals	9,257		10,222		10,261
Client:
Mobility	15,303		19,104		18,971
Desktop PCs	12,991		14,144		14,685
Net revenue	$	56,940	$	62,071	$	61,494