| Document and Company Information (USD $) | |||
| In Billions, except Share data | 6 Months Ended
Jul. 31, 2009 | Aug. 28, 2009
| Aug. 01, 2008
|
| Document And Company Information [Abstract] | |||
| Entity Registrant Name | Dell Inc. | ||
| Entity Central Index Key | 0000826083 | ||
| Document Type | 10-Q | ||
| Document Period End Date | 2009-07-31 | ||
| Amendment Flag | false | ||
| Current Fiscal Year End Date | --01-29 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | 41.8 | ||
| Entity Common Stock Shares Outstanding | 1,955,623,326 |
| Condensed Consolidated Statements of Financial Position (USD $) | ||
| In Millions | Jul. 31, 2009
| Jan. 30, 2009
|
| Current assets: | ||
| Cash and cash equivalents | $11,699 | $8,352 |
| Short-term investments | 299 | 740 |
| Accounts receivable, net | 5,403 | 4,731 |
| Financing receivables, net | 2,252 | 1,712 |
| Inventories, net | 839 | 867 |
| Other current assets | 3,348 | 3,749 |
| Total current assets | 23,840 | 20,151 |
| Property, plant, and equipment, net | 2,117 | 2,277 |
| Investments | 746 | 454 |
| Long-term financing receivables, net | 263 | 500 |
| Goodwill | 1,748 | 1,737 |
| Purchased intangible assets, net | 646 | 724 |
| Other non-current assets | 698 | 657 |
| Total assets | 30,058 | 26,500 |
| Current liabilities: | ||
| Short-term debt | 49 | 113 |
| Accounts payable | 9,698 | 8,309 |
| Accrued and other | 3,765 | 3,788 |
| Short-term deferred enhanced services revenue | 2,775 | 2,649 |
| Total current liabilities | 16,287 | 14,859 |
| Long-term debt | 3,394 | 1,898 |
| Long-term deferred enhanced services revenue | 3,051 | 3,000 |
| Other non-current liabilities | 2,701 | 2,472 |
| Total liabilities | 25,433 | 22,229 |
| Stockholders' equity: | ||
| Preferred stock and capital in excess of $.01 par value; shares authorized: 5,000; issued and outstanding: none | 0 | 0 |
| Common stock and capital in excess of $.01 par value; shares authorized: 7,000; shares issued: 3,349 and 3,338, respectively; shares outstanding: 1,955 and 1,944, respectively | 11,289 | 11,189 |
| Treasury stock at cost: 919 shares | (27,904) | (27,904) |
| Retained earnings | 21,439 | 20,677 |
| Accumulated other comprehensive (loss) income | (199) | 309 |
| Total stockholders' equity | 4,625 | 4,271 |
| Total liabilities and stockholders' equity | $30,058 | $26,500 |
| Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $) | ||
| Share data in Millions | Jul. 31, 2009
| Jan. 30, 2009
|
| Preferred stock and capital in excess, par value | 0.01 | 0.01 |
| Preferred stock and capital in excess, shares authorized | 5,000 | 5,000 |
| Preferred stock and capital in excess, shares issued | 0 | 0 |
| Preferred stock and capital in excess, shares outstanding | 0 | 0 |
| Common stock and capital in excess, par value | 0.01 | 0.01 |
| Common stock and capital in excess, shares authorized | 7,000 | 7,000 |
| Common stock and capital in excess, shares issued | 3,349 | 3,338 |
| Common stock and capital in excess, shares outstanding | 1,955 | 1,944 |
| Treasury stock at cost, shares | 919 | 919 |
| Condensed Consolidated Statements of Income (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jul. 31, 2009 | 3 Months Ended
Aug. 01, 2008 | 6 Months Ended
Jul. 31, 2009 | 6 Months Ended
Aug. 01, 2008 |
| Net revenue | ||||
| Products | $10,623 | $14,147 | $20,855 | $28,103 |
| Services, including software related | 2,141 | 2,287 | 4,251 | 4,408 |
| Total net revenue | 12,764 | 16,434 | 25,106 | 32,511 |
| Cost of net revenue | ||||
| Products | 8,978 | 12,161 | 17,764 | 24,008 |
| Services, including software related | 1,395 | 1,446 | 2,783 | 2,711 |
| Total cost of net revenue | 10,373 | 13,607 | 20,547 | 26,719 |
| Gross margin | 2,391 | 2,827 | 4,559 | 5,792 |
| Operating expenses | ||||
| Selling, general, and administrative | 1,571 | 1,840 | 3,184 | 3,752 |
| In-process research and development | 0 | 0 | 0 | 2 |
| Research, development, and engineering | 149 | 168 | 290 | 320 |
| Total operating expenses | 1,720 | 2,008 | 3,474 | 4,074 |
| Operating income | 671 | 819 | 1,085 | 1,718 |
| Investment and other income (expense), net | (42) | 18 | (44) | 143 |
| Income before income taxes | 629 | 837 | 1,041 | 1,861 |
| Income tax provision | 157 | 221 | 279 | 461 |
| Net income | $472 | $616 | $762 | $1,400 |
| Earnings per common share: | ||||
| Basic | 0.24 | 0.31 | 0.39 | 0.7 |
| Diluted | 0.24 | 0.31 | 0.39 | 0.69 |
| Weighted-average shares outstanding: | ||||
| Basic | 1,955 | 1,991 | 1,952 | 2,013 |
| Diluted | 1,960 | 1,999 | 1,956 | 2,019 |
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 6 Months Ended
Jul. 31, 2009 | 6 Months Ended
Aug. 01, 2008 |
| Cash flows from operating activities: | ||
| Net income | $762 | $1,400 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 402 | 379 |
| Stock-based compensation | 146 | 128 |
| In-process research and development charges | 0 | 2 |
| Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies | 26 | (110) |
| Deferred income taxes | (91) | (19) |
| Other | 173 | 85 |
| Changes in operating assets and liabilities, net of effects from acquisitions: | ||
| Accounts receivable | (537) | (392) |
| Financing receivables | (379) | 19 |
| Inventories | 29 | 77 |
| Other assets | (24) | (473) |
| Accounts payable | 1,318 | (328) |
| Deferred enhanced services revenue | 40 | 405 |
| Accrued and other liabilities | (28) | 78 |
| Change in cash from operating activities | 1,837 | 1,251 |
| Cash flows from investing activities: | ||
| Purchases | (776) | (788) |
| Maturities and sales | 982 | 1,752 |
| Capital expenditures | (179) | (264) |
| Proceeds from sale of facility and land | 16 | 44 |
| Acquisition of business, net of cash received | (3) | (165) |
| Change in cash from investing activities | 40 | 579 |
| Cash flows from financing activities: | ||
| Repurchase of common stock | 0 | (2,451) |
| Issuance of common stock under employee plans | 0 | 68 |
| Issuance (payments) of commercial paper, net | (100) | 100 |
| Net proceeds from debt | 1,491 | 1,519 |
| Repayments of debt | (12) | (223) |
| Change in cash from financing activities | 1,379 | (987) |
| Effect of exchange rate changes on cash and cash equivalents | 91 | 16 |
| Change in cash and cash equivalents | 3,347 | 859 |
| Cash and cash equivalents at beginning of period | 8,352 | 7,764 |
| Cash and cash equivalents at end of period | $11,699 | $8,623 |
| Basis of Presentation | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Basis of Presentation [Abstract] | |
| BASIS OF PRESENTATION | NOTE1 BASIS OF PRESENTATION Basis of Presentation The accompanying Condensed Consolidated Financial Statements of Dell Inc. (Dell) should be read in conjunction with the Consolidated Financial Statements and accompanying Notes filed with the U.S.Securities and Exchange Commission (SEC) in Dells Annual Report on Form10-K for the fiscal year ended January30, 2009. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of Dell and its consolidated subsidiaries at July31, 2009, the results of its operations for the three and six months ended July31, 2009, and August1, 2008, and its cash flows for the six months ended July31, 2009, and August1, 2008. Dell has evaluated subsequent events through the date this quarterly report on Form10-Q was filed with the SEC on September3, 2009. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in Dells Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations and cash flows for the three and six months ended July31, 2009, and August1, 2008, are not necessarily indicative of the results to be expected for the full year. Recently Issued and Adopted Accounting Pronouncements In December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No.141(R), Business Combinations (SFAS141(R)). SFAS141(R) requires that the acquisition method of accounting be applied to a broader set of business combinations and establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, liabilities assumed, any noncontrolling interest in the acquiree, and the goodwill acquired. Dell adopted SFAS141(R) in the first quarter of Fiscal 2010. The adoption of SFAS141(R) did not have any impact on Dells Condensed Consolidated Financial Statements. In February 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) 157-2, Effective Date of FASB Statement No.157 (FSP157-2), which delayed the effective date of SFAS157 for all nonfinancial assets and nonfinancial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Dell adopted the provisions of FSP157-2 related to nonfinancial assets and liabilities effective in the first quarter of Fiscal 2010. The adoption of the provisions of SFAS157 related to nonfinancial assets and nonfinancial liabilities did not have a material impact on Dells Condensed Consolidated Financial Statements. See Note4 of Notes to Condensed Consolidated Financial Statements for additional information. In |
| Inventories | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Inventories [Abstract] | |
| INVENTORIES | NOTE2 INVENTORIES July31, January30, 2009 2009 (in millions) Inventories, net Production materials $ 432 $ 454 Work-in-process 115 150 Finished goods 292 263 Inventories, net $ 839 $ 867 |
| Financial Instruments | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Financial Instruments [Abstract] | |
| FINANCIAL INSTRUMENTS | NOTE3 FINANCIAL INSTRUMENTS Investments The following table summarizes, by major security type, the fair value and amortized cost of Dells investments. All debt security investments with remaining maturities in excess of one year and substantially all equity and other securities are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. July31, 2009 January30, 2009 Fair Unrealized Unrealized Fair Unrealized Unrealized Value Cost Gain (Loss) Value Cost Gain (Loss) (in millions) Debt securities U.S. government and agencies $ 160 $ 161 $ - $ (1 ) $ 539 $ 537 $ 3 $ (1 ) U.S. corporate 556 556 3 (3 ) 457 464 2 (9 ) International corporate 190 190 - - 78 77 1 - State and municipal governments 3 3 - - 5 5 - - Subtotal 909 910 3 (4 ) 1,079 1,083 6 (10 ) Equity and other securities 136 136 - - 115 115 - - Investments $ 1,045 $ 1,046 $ 3 $ (4 ) $ 1,194 $ 1,198 $ 6 $ (10 ) Short-term $ 299 $ 299 $ - $ - $ 740 $ 737 $ 4 $ (1 ) Long-term 746 747 3 (4 ) 454 461 2 (9 ) Investments $ 1,045 $ 1,046 $ 3 $ (4 ) $ 1,194 $ 1,198 $ 6 $ (10 ) Dells investments in debt securities are classified as available-for-sale and equity securities held in Dells Deferred Compensation Plan are classified as trading securities. These securities are reported at fair value (based on quoted prices and market observable inputs) using the specific identification method. All other investments are initially recorded at cost and reduced for any impairment losse |
| Fair Value Measurements | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Fair Value Measurements [Abstract] | |
| FAIR VALUE MEASUREMENTS | NOTE4 FAIR VALUE MEASUREMENTS Fair Value Measurements On February2, 2008, Dell adopted the effective portions of SFAS157 for all financial assets and liabilities and non-financial assets and liabilities accounted for at fair value on a recurring basis. On January31, 2009, Dell adopted FSP157-2 for all non-financial assets and liabilities accounted for at fair value on a non-recurring basis. SFAS157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, Dell uses various methods including market, income, and cost approaches. Dell utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The adoption of FSP157-2 did not have a material effect on the Condensed Consolidated Financial Statements. As a basis for categorizing these inputs, SFAS157 establishes the following hierarchy that prioritizes the inputs used to measure fair value from market based assumptions to entity specific assumptions: Level1:Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. Level2:Observable inputs other than quoted prices included in Level1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level3:Inputs reflect managements best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instruments valuation. The following tables present the hierarchy for Dells assets and liabilities measured at fair value on a recurring basis as of July31, 2009, and January30, 2009. Investments by major categories are disclosed in Note3 of Notes to Condensed Consolidated Financial Statements. July31, 2009 Level 1 Level 2 Level 3 Total Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in millions) Cash equivalents $ - $ 119 $ - $ 119 Investments- available for sale securities - 924 29 953 Investments- trading securities - 92 - 92 Retained interest - - 119 119 Derivative instruments - 32 - 32 Total assets measured at fair value on recurring basis $ - $ 1,167 $ 148 $ 1,315 |
| Financial Services | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Financial Services [Abstract] | |
| FINANCIAL SERVICES | NOTE5 FINANCIAL SERVICES Dell Financial Services L.L.C. Dell offers or arranges various financing options and services for its business and consumer customers in the U.S.through Dell Financial Services L.L.C. (DFS), a wholly-owned subsidiary of Dell. DFSs key activities include the origination, collection, and servicing of customer receivables related to the purchase of Dell products. New financing originations, which represent the amounts of financing provided to customers for equipment and related software and services through DFS, were $1.0billion and $1.2billion, during the three months ended July31, 2009, and August1, 2008, respectively, and $1.9billion and $2.3billion for the six months ended July31, 2009, and August1, 2008, respectively. Financing Receivables The following table summarizes the components of Dells financing receivables: July31, January30, 2009 2009 (in millions) Financing receivables, net Customer receivables Revolving loans $ 1,034 $ 963 Fixed-term leases and loans 715 723 Subtotal 1,749 1,686 Customer receivables previously unconsolidated 561 - Allowance for losses (173 ) (149 ) Customer receivables, net 2,137 1,537 Residual interest 259 279 Retained interest 119 396 Financing receivables, net $ 2,515 $ 2,212 Short-term $ 2,252 $ 1,712 Long-term 263 500 Financing receivables, net $ 2,515 $ 2,212 Customer Receivables The following is the description of the components of customer receivables: Revolving loans offered under private label credit financing programs provide qualified customers with a revolving credit line for the purchase of products and services offered by Dell. Revolving loans bear interest at a variable annual percentage rate that is tied to the prime rate. Based on historical payment patterns, revolving loan transactions are typically repaid on average within 12months. Revolving loans are included in short-term financing receivables in the table above. From time to time, account holders may have the opportunity to finance their Dell purchases with special programs during which, if the outstanding balance is paid in full by a specific date, no interest is charged. These special programs generally range from 3 to 12months. At July31, 2009, and January30, 2009, $331million and $352million, respectively, were receivable under these special programs. Dell enters into sales-type lease arrangements with customers who desire lease financing. Leases with business customers have fixed terms of two to five years. Future maturities of minimum lease payments at July31, 2009, for future fiscal year |
| Goodwill and Intangible Assets | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Goodwill and Intangible Assets [Abstract] | |
| GOODWILL AND INTANGIBLE ASSETS | NOTE6 GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill allocated to Dells business segments as of July31, 2009, and January30, 2009, and changes in the carrying amount of goodwill were as follows: Large Small and Enterprise Public Medium Business Consumer Total (in millions) Balance at January30, 2009 $ 677 $ 411 $ 354 $ 295 $ 1,737 Adjustments 6 2 - 3 11 Balance at July31, 2009 $ 683 $ 413 $ 354 $ 298 $ 1,748 Goodwill and indefinite lived intangibles are tested annually during the second fiscal quarter and whenever events or circumstances indicate impairment may have occurred. If the carrying amount of goodwill exceeds its fair value, estimated based on discounted cash flow analyses, an impairment charge would be recorded. During the first half of Fiscal 2010, Dell evaluated goodwill and indefinite lived intangibles for potential triggering events that could indicate impairment. Based on the results of the impairment tests, Dell determined that no impairment of goodwill and indefinite lived intangible assets existed at July31, 2009. The goodwill adjustments are primarily the result of contingent purchase price considerations related to prior acquisitions and the effects of foreign currency fluctuations. |
| Warranty Liability and Related Deferred Enhanced Service Revenue | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Warranty Liability and Related Deferred Service Revenue [Abstract] | |
| WARRANTY LIABILITY AND RELATED DEFERRED ENHANCED SERVICES REVENUE | NOTE7 WARRANTY LIABILITY AND RELATED DEFERRED ENHANCED SERVICES REVENUE Revenue from extended warranty and service contracts including support agreements, for which Dell is obligated to perform, is recorded as deferred enhanced services revenue and subsequently 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 software related revenue is included in accrued and other current and other non-current liabilities on Dells Condensed Consolidated Statements of Financial Position. Dell records warranty liabilities at the time of sale for the estimated costs that may be incurred under its limited warranty. Changes in Dells deferred enhanced services revenue for extended warranties and its warranty liability for standard warranties, which are included in accrued and other current and other non-current liabilities on Dells Condensed Consolidated Statements of Financial Position, are presented in the following tables: Three Months Ended Six Months Ended July31, August1, July31, August1, 2009 2008(b) 2009 2008(b) (in millions) Deferred enhanced services revenue Deferred enhanced services revenue at beginning of period $ 5,637 $ 5,424 $ 5,649 $ 5,260 Revenue deferred for new extended warranty and services contracts sold 957 1,058 1,717 2,002 Revenue recognized (768 ) (793 ) (1,540 ) (1,573 ) Deferred enhanced services revenue at end of period $ 5,826 $ 5,689 $ 5,826 $ 5,689 Current portion $ 2,775 $ 2,572 $ 2,775 $ 2,572 Non-current portion 3,051 3,117 3,051 3,117 Deferred enhanced services revenue at end of period $ 5,826 $ 5,689 $ 5,826 $ 5,689 Three Months Ended Six Months Ended July31, August1, July31, August1, 2009 2008(b) 2009 2008(b) (in millions) Warranty liability Warranty liability at beginning of period $ 1,032 $ 1,014 $ 1,035 $ 929 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties(a) 193 314 487 683 Services obligations honored (253 ) (250 ) (550 ) (534 ) Warranty liability at end of period $ 972 $ 1,078 $ 972 $ 1,078 |
| Commitments and Contingencies | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | NOTE8 COMMITMENTS AND CONTINGENCIES Severance Costs and Facility Actions In Fiscal 2008, Dell announced a comprehensive review of costs that is currently ongoing. Since this announcement and through the end of the second quarter of Fiscal 2010, Dell has reduced its headcount and closed or sold certain Dell facilities. Results of operations for the second quarter and first six months of Fiscal 2010 include net pre-tax charges of $87million and $272million, respectively, for these actions, which is comprised of $62million and $237million, respectively, related to headcount reduction and a net $25million and $35million, respectively, related to facility actions, including accelerated depreciation. In the second quarter and first half of Fiscal 2009, costs related to severance and facility action expenses were $25million and $131million, respectively. As of July31, 2009, and January30, 2009, the accrual related to these cost reductions and efficiency actions was $188million and $98million, respectively, which is included in accrued and other liabilities in the Condensed Consolidated Statements of Financial Position. Restricted Cash Pursuant to an agreement between Dell and CIT, Dell is required to maintain escrow cash accounts that are held as recourse reserves for credit losses, performance fee deposits related to Dells private label credit card, and deferred servicing revenue. Restricted cash in the amount of $168million and $213million is included in other current assets at July31, 2009, and January30, 2009, respectively. Legal Matters Dell is involved in various claims, suits, assessments, investigations, and legal proceedings that arise from time-to-time in the ordinary course of its business, including matters involving consumer, antitrust, tax, intellectual property, and other issues on a global basis. While Dell does not expect that the ultimate outcomes in these proceedings, individually or collectively, will have a material adverse effect on its business, financial position, results of operations, or cash flows, the results and timing of the ultimate resolutions of these various proceedings are inherently unpredictable. Whether the outcome of any claim, suit, assessment, investigation, or legal proceeding, individually or collectively, could have a material effect on Dells business, financial condition, results of operations, or cash flows will depend on a number of variables, including the nature, timing, and amount of any associated expenses, amounts paid in settlement, damages or other remedies or consequences. As required by SFASNo.5, Accounting for Contingencies, Dell accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. Dell reviews these accruals at least quarterly and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained and Dells views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in Dells accrued liabilities would be reco |
| Comprehensive Income | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Comprehensive Income [Abstract] | |
| COMPREHENSIVE INCOME | NOTE9 COMPREHENSIVE INCOME The following table summarizes comprehensive income for the three and six months ended July31, 2009, and August1, 2008: Three Months Ended Six Months Ended July31, August1, July31, August1, 2009 2008 2009 2008 (in millions) Comprehensive income Net income $ 472 $ 616 $ 762 $ 1,400 Change related to foreign currency hedging instruments, net (119 ) 14 (477 ) (17 ) Change related to marketable securities, net 3 2 3 (23 ) Foreign currency translation adjustments (26 ) 28 (34 ) (13 ) Comprehensive income $ 330 $ 660 $ 254 $ 1,347 |
| Earnings Per Common Share | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Earnings Per Common Share [Abstract] | |
| EARNINGS PER COMMON SHARE | NOTE10 EARNINGS PER COMMON SHARE Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. Dell excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is antidilutive. Accordingly, certain stock-based incentive awards have been excluded from the calculation of diluted earnings per share totaling 232million shares and 237million shares for the second quarter of Fiscal 2010 and Fiscal 2009, respectively; and 239million and 256million shares during the six months ended July31, 2009 and August1, 2008, respectively. The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended July31, 2009, and August1, 2008: Three Months Ended Six Months Ended July31, August1, July31, August1, 2009 2008 2009 2008 (in millions, except per share amounts) Numerator Net income $ 472 $ 616 $ 762 $ 1,400 Denominator Weighted-average shares outstanding: Basic 1,955 1,991 1,952 2,013 Effect of dilutive options, restricted stock units, restricted stock, and other 5 8 4 6 Diluted 1,960 1,999 1,956 2,019 Earnings per common share: Basic $ 0.24 $ 0.31 $ 0.39 $ 0.70 Diluted $ 0.24 $ 0.31 $ 0.39 $ 0.69 |
| Segment Information | |
| 6 Months Ended
Jul. 31, 2009 USD / shares | |
| Segment Information [Abstract] | |
| SEGMENT INFORMATION | NOTE11 SEGMENT INFORMATION During the first quarter of Fiscal 2010, Dell completed its reorganization from geographic commercial segments (Americas Commercial; Europe, Middle East, and Africa Commercial; and Asia Pacific-Japan Commercial) to global business units (Large Enterprise, Public, and Small and Medium Business), reflecting the impact of globalization on Dells customer base. Dells four global business segments are Large Enterprise, Public, Small and Medium Business, and Consumer. The business segments disclosed in the accompanying Condensed Consolidated Financial Statements are based on this organizational structure and information reviewed by Dells management to evaluate the business segment results. Dells measure of segment operating income for management reporting purposes excludes severance and facility action expenses, broad based long-term incentives, acquisition-related charges such as in-process research and development, and amortization of intangibles. The following table presents net revenue by Dells reportable global segments as well as a reconciliation of consolidated segment operating income to Dells consolidated operating income for the three and six months ended July31, 2009, and August1, 2008: Three Months Ended Six Months Ended July31, August1, July31, August1, 2009 2008 2009 2008 (in millions) Net revenue Large Enterprise $ 3,285 $ 4,806 $ 6,685 $ 9,727 Public 3,798 4,510 6,969 8,091 Small and Medium Business 2,820 3,958 5,787 8,202 Consumer 2,861 3,160 5,665 6,491 Net revenue $ 12,764 $ 16,434 $ 25,106 $ 32,511 Consolidated operating income: Large Enterprise $ 172 $ 259 $ 364 $ 645 Public 383 331 676 608 Small and Medium Business 246 330 476 660 Consumer 89 29 88 117 Consolidated segment operating income 890 949 1,604 2,030 Severance and facility action expenses (87 ) (25 ) (272 ) (131 ) Broad based long-term incentives(a) (92 ) (78 ) (168 ) (128 ) In-process research and development - - - (2 ) Amortization of intangible assets (40 ) (27 ) (79 ) (51 ) Consolidated operating income $ 671 $ 819 $ 1,085 |
