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Warranty and Deferred Extended Warranty Revenue (Notes)
 3 Months Ended
May 03, 2013
Product Warranties Disclosures [Abstract]  
Warranty and Deferred Extended Warranty Revenue
NOTE 8 — WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE
Dell records liabilities for its standard limited warranties at the time of sale for the estimated costs that may be incurred. The liability for standard warranties is included in accrued and other current liabilities and other non-current liabilities in the Condensed Consolidated Statements of Financial Position. Revenue from the sale of extended warranties is recognized over the term of the contract or when the service is completed, and the costs associated with these contracts are recognized as incurred. Deferred extended warranty revenue is included in deferred revenue in the Condensed Consolidated Statements of Financial Position. Changes in Dell's liabilities for standard limited warranties and deferred revenue related to extended warranties are presented in the following tables for the periods indicated:
 
 
Three Months Ended
 
 
May 3,
2013
 
May 4,
2012
 
 
(in millions)
Warranty liability:
 
 

 
 

Warranty liability at beginning of period
 
$
762

 
$
888

Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties(a)(b)
 
242

 
283

Service obligations honored
 
(244
)
 
(309
)
Warranty liability at end of period
 
$
760

 
$
862

Current portion
 
$
490

 
$
558

Non-current portion
 
270

 
304

Warranty liability at end of period
 
$
760

 
$
862

 
 
 
 
 
 
 
Three Months Ended
 
 
May 3, 2013(c)
 
May 4,
2012
 
 
(in millions)
Deferred extended warranty revenue:
 
 

 
 

Deferred extended warranty revenue at beginning of period
 
$
7,048

 
$
7,002

Revenue deferred for new extended warranties(b)
 
959

 
1,006

Revenue recognized
 
(1,025
)
 
(964
)
Deferred extended warranty revenue at end of period
 
$
6,982

 
$
7,044

Current portion
 
$
3,337

 
$
3,308

Non-current portion
 
3,645

 
3,736

Deferred extended warranty revenue at end of period
 
$
6,982

 
$
7,044

____________________
(a) 
Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. Dell'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.
(c) 
Prior period amounts have been reclassified to conform to the current period presentation.