Dell 10-Q 3 Dec 09 2010 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	9 Months Ended Oct. 30, 2009	Nov. 27, 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	2009-10-30
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		1,956,656,359

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position (USD $)
In Millions	Oct. 30, 2009	Jan. 30, 2009
Current assets:
Cash and cash equivalents	$12,795	$8,352
Short-term investments	331	740
Accounts receivable, net	5,279	4,731
Financing receivables, net	2,318	1,712
Inventories, net	952	867
Other current assets	3,196	3,749
Total current assets	24,871	20,151
Property, plant, and equipment, net	1,978	2,277
Investments	828	454
Long-term financing receivables, net	311	500
Goodwill	1,748	1,737
Purchased intangible assets, net	607	724
Other non-current assets	682	657
Total assets	31,025	26,500
Current liabilities:
Short-term debt	351	113
Accounts payable	9,947	8,309
Accrued and other	3,687	3,788
Short-term deferred enhanced services revenue	2,876	2,649
Total current liabilities	16,861	14,859
Long-term debt	3,442	1,898
Long-term deferred enhanced services revenue	3,054	3,000
Other non-current liabilities	2,643	2,472
Total liabilities	26,000	22,229
Stockholders' equity:
Preferred stock and capital in excess of $.01 par value; shares authorized: 5; issued and outstanding: none	0	0
Common stock and capital in excess of $.01 par value; shares authorized: 7,000; shares issued: 3,350 and 3,338, respectively; shares outstanding: 1,956 and 1,944, respectively	11,351	11,189
Treasury stock at cost: 919 shares	(27,904)	(27,904)
Retained earnings	21,776	20,677
Accumulated other comprehensive (loss) income	(198)	309
Total stockholders' equity	5,025	4,271
Total liabilities and stockholders' equity	$31,025	$26,500

1_Condensed Consolidated Statem

Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
Share data in Millions	Oct. 30, 2009	Jan. 30, 2009
Stockholders' equity:
Preferred stock and capital in excess, par value	0.01	0.01
Preferred stock and capital in excess, shares authorized	5	5
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	3,350	3,338
Common stock and capital in excess, shares outstanding	1,956	1,944
Treasury stock at cost, shares	919	919

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Oct. 30, 2009	3 Months Ended Oct. 31, 2008	9 Months Ended Oct. 30, 2009	9 Months Ended Oct. 31, 2008
Net revenue
Products	$10,746	$12,970	$31,601	$41,073
Services, including software related	2,150	2,192	6,401	6,600
Total net revenue	12,896	15,162	38,002	47,673
Cost of net revenue
Products	9,269	10,958	27,033	34,966
Services, including software related	1,394	1,351	4,177	4,062
Total cost of net revenue	10,663	12,309	31,210	39,028
Gross margin	2,233	2,853	6,792	8,645
Operating expenses
Selling, general, and administrative	1,501	1,671	4,685	5,423
In-process research and development	0	0	0	2
Research, development, and engineering	155	167	445	487
Total operating expenses	1,656	1,838	5,130	5,912
Operating income	577	1,015	1,662	2,733
Investment and other income (expense), net	(63)	(6)	(107)	137
Income before income taxes	514	1,009	1,555	2,870
Income tax provision	177	282	456	743
Net income	$337	$727	$1,099	$2,127
Earnings per common share:
Basic	0.17	0.37	0.56	1.07
Diluted	0.17	0.37	0.56	1.06
Weighted-average shares outstanding:
Basic	1,956	1,953	1,953	1,993
Diluted	1,966	1,957	1,959	1,998

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	9 Months Ended Oct. 30, 2009	9 Months Ended Oct. 31, 2008
Cash flows from operating activities:
Net income	$1,099	$2,127
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	593	573
Stock-based compensation	211	201
In-process research and development charges	0	2
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	58	(113)
Deferred income taxes	(33)	209
Provision for doubtful accounts - including financing receivables	290	199
Other	75	17
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(456)	(241)
Financing receivables	(556)	(28)
Inventories	(83)	65
Other assets	93	(648)
Accounts payable	1,551	(1,992)
Deferred enhanced services revenue	36	424
Accrued and other liabilities	(240)	370
Change in cash from operating activities	2,638	1,165
Cash flows from investing activities:
Purchases	(1,182)	(1,150)
Maturities and sales	1,307	2,034
Capital expenditures	(249)	(401)
Proceeds from sale of facility and land	16	44
Acquisition of business, net of cash received	(3)	(165)
Change in cash from investing activities	(111)	362
Cash flows from financing activities:
Repurchase of common stock	0	(2,866)
Issuance of common stock under employee plans	0	79
Issuance of commercial paper (maturity 90 days or less), net	43	253
Proceeds from debt	1,748	1,519
Repayments of debt	(62)	(237)
Change in cash from financing activities	1,729	(1,252)
Effect of exchange rate changes on cash and cash equivalents	187	(129)
Change in cash and cash equivalents	4,443	146
Cash and cash equivalents at beginning of period	8,352	7,764
Cash and cash equivalents at end of period	$12,795	$7,910

Basis of Presentation

Basis of Presentation
	9 Months Ended Oct. 30, 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 October30, 2009, the results of its operations for the three and nine months ended October30, 2009, and October31, 2008, and its cash flows for the nine months ended October30, 2009, and October31, 2008. 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 nine months ended October30, 2009, and October31, 2008, are not necessarily indicative of the results to be expected for the full year. Accounting Pronouncements The Financial Accounting Standards Board (FASB) is the authoritative body for financial accounting and reporting in the United States. On July31, 2009, the FASB Accounting Standards Codification (the Codification) became the authoritative source of accounting principles to be applied to the financial statements of nongovernmental entities prepared in accordance with GAAP. The following is a list of recent pronouncements issued by the FASB: Recently Issued and Adopted Accounting Pronouncements Business Combinations:The pronouncement requires 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 the pronouncement in the first quarter of Fiscal 2010. The adoption did not have a material impact on Dells Condensed Consolidated Financial Statements at the time of adoption, but the pronouncement will impact the accounting for acquisitions subsequent to that date, including Dells acquisition of Perot Systems Corporation (Perot Systems) on November3, 2009. Management is currently evaluating the impact that the Perot Systems acquisition will have on Dells consolidated financial statements. See Note13 of Notes to Condensed Consolidated Financial Statements for additional information. Fair Value Measurements and Disclosures:The pronouncements define fair value, establish guidelines for measuring fair value, and expand disclosures regarding fair v

Inventories

Inventories
	9 Months Ended Oct. 30, 2009 USD / shares
Inventories [Abstract]
INVENTORIES	NOTE2 INVENTORIES October30, January30, 2009 2009 (in millions) Inventories, net: Production materials $ 459 $ 454 Work-in-process 150 150 Finished goods 343 263 Inventories, net $ 952 $ 867

Financial Instruments

Financial Instruments
	9 Months Ended Oct. 30, 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. October30, 2009 January30, 2009 Fair Unrealized Unrealized Fair Unrealized Unrealized Value Cost Gain (Loss) Value Cost Gain (Loss) (in millions) Investments Debt securities: U.S. government and agencies $ 112 $ 112 $ - $ - $ 539 $ 537 $ 3 $ (1 ) U.S. corporate 602 602 3 (3 ) 484 491 2 (9 ) International corporate 334 334 1 (1 ) 78 77 1 (0 ) State and municipal governments 3 3 - - 5 5 0 - Total debt securities 1,051 1,051 4 (4 ) 1,106 1,110 6 (10 ) Equity and other securities 108 108 - - 88 88 - - Total investments $ 1,159 $ 1,159 $ 4 $ (4 ) $ 1,194 $ 1,198 $ 6 $ (10 ) Dells investments in debt securities are classified as available-for-sale. Equity and other securities primarily relate to investments held in Dells Deferred Compensation Plan, which 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 losses. The fair value of Dells portfolio is affected primarily by interest rate movements rather than credit and liquidity risks. Dell attempts to mitigate interest rate, credit, and liquidity risks by investing primarily in high credit quality securities with AAA and AA ratings and short-term securities with an A-1 rating, limiting the amount that can be invested in any single issuer, and investing primarily in shorter term investments whose market value is less sensitive to interest rate changes. As part of its

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Oct. 30, 2009 USD / shares
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	NOTE4 FAIR VALUE MEASUREMENTS Fair Value Measurements The following tables present the hierarchy for Dells assets and liabilities measured at fair value on a recurring basis as of October30, 2009, and January30, 2009: October30, 2009 January30, 2009 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Quoted Prices Prices in Active Significant in Active Significant Markets for Other Significant Markets for Other Significant Identical Observable Unobservable Identical Observable Unobservable Assets Inputs Inputs Assets Inputs Inputs (in millions) Assets: Cash equivalents $ - $ 28 $ - $ 28 $ - $ 56 $ - $ 56 Debt Securities: U.S. government and agencies - 112 - 112 - 539 - 539 U.S. corporate - 573 29 602 - 457 27 484 International corporate - 334 - 334 - 78 - 78 State municipal bonds - 3 - 3 - 5 - 5 Equity and other securities - 93 - 93 1 73 - 74 Retained interest - - 134 134 - - 396 396 Derivative instruments - 7 - 7 - 627 - 627 Total assets $ - $ 1,150 $ 163 $ 1,313 $ 1 $ 1,835 $ 423 $ 2,259 Liabilities: Derivative instruments $ - $ 178 $ - $ 178 $ - $ 131 $ - $ 131 Total liabilities $ - $ 178 $ - $ 178 $ - $ 131 $ - $ 131 The fo

Financial Services

Financial Services
	9 Months Ended Oct. 30, 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 $0.9billion and $1.0billion, during the three months ended October30, 2009, and October31, 2008, respectively, and $2.6billion and $3.3billion for the nine months ended October30, 2009, and October31, 2008, respectively. Financing Receivables The following table summarizes the components of Dells financing receivables: October30, January30, 2009 2009 (in millions) Financing receivables Customer receivables Revolving loans $ 1,185 $ 963 Fixed-term leases and loans 736 723 Subtotal 1,921 1,686 Customer receivables previously unconsolidated 499 - Allowance for losses (182 ) (149 ) Customer receivables, net 2,238 1,537 Residual interest 257 279 Retained interest 134 396 Financing receivables, net $ 2,629 $ 2,212 Short-term $ 2,318 $ 1,712 Long-term 311 500 Financing receivables, net $ 2,629 $ 2,212 Customer Receivables The following is the description of the components of Dells 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. 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 October30, 2009, for future fiscal years are as follows: 2010 - $91million; 2011 $249million; 2012 $160million; 2013 $49million; and 2014 $4million. Fixed-term loans are offere

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	9 Months Ended Oct. 30, 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 October30, 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 October30, 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. Based on the results of its annual impairment tests during the first half of Fiscal 2010, Dell determined that no impairment of goodwill and indefinite lived intangible assets existed at July31, 2009. Further, no triggering events have transpired since July31, 2009, that would indicate a potential impairment of goodwill as of October30, 2009. Dell does not have any accumulated goodwill impairment charges as of October30, 2009. The goodwill adjustments are primarily the result of contingent purchase price considerations related to prior period acquisitions and the effects of foreign currency fluctuations.

Warranty Liability and Related

Warranty Liability and Related Deferred Enhanced Services Revenue
	9 Months Ended Oct. 30, 2009 USD / shares
Warranty Liability and Related Deferred Enhanced Services 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 standard limited warranty. Changes in Dells deferred enhanced services revenue for extended warranties and service contracts 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 Nine Months Ended October30, October31, October30, October31, 2009 2008 2009 2008 (in millions) Deferred enhanced services revenue: Deferred enhanced services revenue at beginning of period $ 5,826 $ 5,689 $ 5,649 $ 5,260 Revenue deferred for new extended warranty and services contracts sold 903 696 2,620 2,698 Revenue recognized (799 ) (812 ) (2,339 ) (2,385 ) Deferred enhanced services revenue at end of period $ 5,930 $ 5,573 $ 5,930 $ 5,573 Current portion $ 2,876 $ 2,572 $ 2,876 $ 2,572 Non-current portion 3,054 3,001 3,054 3,001 Deferred enhanced services revenue $ 5,930 $ 5,573 $ 5,930 $ 5,573 Three Months Ended Nine Months Ended October30, October31, October30, October31, 2009 2008 2009 2008 (in millions) Warranty liability: Warranty liability at beginning of period $ 972 $ 1,078 $ 1,035 $ 929 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties(a) 222 227 709 910 Services obligations honored (295 ) (283 ) (845 ) (817 ) Warranty liability at end of period $ 899 $

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Oct. 30, 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 third quarter of Fiscal 2010, Dell has reduced its headcount and closed or sold certain Dell facilities. Results of operations for the third quarter and first nine months of Fiscal 2010 include net pre-tax charges of $123million and $395million, respectively, for these actions, which is comprised of $22million and $259million, respectively, related to headcount reduction and $101million and $136million, respectively, related to facility actions. In the third quarter and first nine months of Fiscal 2009, costs related to severance and facility action expenses were $17million and $148million, respectively. As of October30, 2009, and January30, 2009, the accrual related to these cost reductions and efficiency actions was $180million and $98million, respectively, which is included in accrued and other liabilities in the Condensed Consolidated Statements of Financial Position. Cash paid related to these actions was $69million and $248million in the third quarter and first nine months of Fiscal 2010, respectively. Approximately $160million of the accrual related to these actions is expected to be paid in the next twelve months. Restricted Cash Pursuant to an agreement between Dell and CIT Group Inc., 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 $141million and $213million is included in other current assets in the Condensed Consolidated Statements of Financial Position at October30, 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. 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 ot

Comprehensive Income

Comprehensive Income
	9 Months Ended Oct. 30, 2009 USD / shares
Comprehensive Income [Abstract]
COMPREHENSIVE INCOME	NOTE9 COMPREHENSIVE INCOME The following table summarizes comprehensive income for the three and nine months ended October30, 2009, and October31, 2008: Three Months Ended Nine Months Ended October30, October31, October30, October31, 2009 2008 2009 2008 (in millions) Comprehensive income: Net income $ 337 $ 727 $ 1,099 $ 2,127 Change related to foreign currency hedging instruments, net 29 808 (448 ) 791 Change related to marketable securities, net 1 (12 ) 4 (35 ) Foreign currency translation adjustments (29 ) 64 (63 ) 51 Comprehensive income $ 338 $ 1,587 $ 592 $ 2,934

Income and Other Taxes

Income and Other Taxes
	9 Months Ended Oct. 30, 2009 USD / shares
Income and Other Taxes [Abstract]
INCOME AND OTHER TAXES	NOTE10 INCOME AND OTHER TAXES Dells effective income tax rate was 34.5% for the third quarter of Fiscal 2010, as compared to 28.0% for the same quarter in the prior year. For the first nine months of Fiscal 2010 and Fiscal 2009, the effective tax rate was 29.3% and 25.9%, respectively. The increases in the effective income tax rate for the respective periods are primarily due to a shift of profit mix toward higher tax jurisdictions. The Fiscal 2009 income tax rate also reflects decreases in uncertain tax positions resulting from the favorable settlement of an examination in a foreign jurisdiction. The differences between the estimated effective income tax rate and the U.S.federal statutory rate of 35% principally result from Dells geographical distribution of taxable income and differences between the book and tax treatment of certain items. The income tax rate for Fiscal 2010 will be impacted by the actual mix of jurisdictions in which income is generated. Dell is currently under income tax audits in various jurisdictions, including the United States. The tax periods open to examination by the major taxing jurisdictions to which Dell is subject include fiscal years 1997 through 2010. As a result of these audits, Dell maintains ongoing discussions and negotiations relating to tax matters with the taxing authorities in these various jurisdictions. Dells U.S.Federal income tax returns for fiscal years 2007 through 2009 are under examination. The Internal Revenue Service (IRS) has issued a Revenue Agents Report for fiscal years 2004 through 2006 proposing certain assessments primarily related to transfer pricing matters, which Dell has protested in accordance with IRS administrative procedures. Dell anticipates this audit will take several years to resolve and believes that it has provided adequate reserves related to the matters under audit. However, should Dell experience an unfavorable outcome in this matter, it could have a material impact on its results of operations, financial position, and cash flows. Although the timing of income tax audit resolutions and negotiations with taxing authorities are highly uncertain, Dell does not anticipate a significant change to the total amount of unrecognized income tax benefits within the next 12months. Dell takes certain non-income tax positions in the jurisdictions in which it operates and has received certain non-income tax assessments from various jurisdictions. Dell is also involved in related non-income tax litigation matters in various jurisdictions, some of which could be material to Dell. Dell believes its positions in these non-income tax litigation matters are supportable, a liability is not probable, and that it will ultimately prevail in the judicial court system. However, significant judgment is required in determining the ultimate outcome of these matters. In the normal course of business, Dells positions and conclusions related to its non-income taxes could be challenged and assessments may be made. To the extent new information is obtained and Dells views on its positions, probable outcomes of assessments, or litigation change, changes in estimates to Dells accrued

Earnings Per Common Share

Earnings Per Common Share
	9 Months Ended Oct. 30, 2009 USD / shares
Earnings Per Common Share [Abstract]
EARNINGS PER COMMON SHARE	NOTE11 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 206million shares and 245million shares for the third quarters of Fiscal 2010 and Fiscal 2009, respectively; and 228million shares and 253million shares during the nine months ended October30, 2009, and October31, 2008, respectively. The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended October30, 2009, and October31, 2008: Three Months Ended Nine Months Ended October30, October31, October30, October31, 2009 2008 2009 2008 (in millions, except per share amounts) Numerator: Net income $ 337 $ 727 $ 1,099 $ 2,127 Denominator: Weighted-average shares outstanding: Basic 1,956 1,953 1,953 1,993 Effect of dilutive options, restricted stock units, restricted stock, and other 10 4 6 5 Diluted 1,966 1,957 1,959 1,998 Earnings per common share: Basic $ 0.17 $ 0.37 $ 0.56 $ 1.07 Diluted $ 0.17 $ 0.37 $ 0.56 $ 1.06

Segment Information

Segment Information
	9 Months Ended Oct. 30, 2009 USD / shares
Segment Information [Abstract]
SEGMENT INFORMATION	NOTE12 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 nine months ended October30, 2009, and October31, 2008: Three Months Ended Nine Months Ended October30, October31, October30, October31, 2009 2008 2009 2008 (in millions) Net revenue: Large Enterprise $ 3,403 $ 4,395 $ 10,088 $ 14,122 Public 3,695 3,960 10,664 12,051 Small and Medium Business 2,956 3,647 8,743 11,849 Consumer 2,842 3,160 8,507 9,651 Net revenue $ 12,896 $ 15,162 $ 38,002 $ 47,673 Consolidated operating income: Large Enterprise $ 174 $ 254 $ 538 $ 899 Public 352 361 1,028 969 Small and Medium Business 282 374 758 1,034 Consumer 10 142 98 259 Consolidated segment operating income 818 1,131 2,422 3,161 Severance and facility action expenses (123 ) (17 ) (395 ) (148 ) Broad based long-term incentives(a) (78 ) (73 ) (246 ) (201 ) In-process research and development - - - (2 ) Amortization of intangible assets (40 ) (26 ) (119 ) (77 ) Consolidated operating income $ 577 $ 1,015 $ 1,662 $ 2,733

Subsequent Events

Subsequent Events
	9 Months Ended Oct. 30, 2009 USD / shares
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE13 SUBSEQUENT EVENTS On November3, 2009, Dell completed its acquisition of all of the outstanding shares of the ClassA common stock of Perot Systems, a worldwide provider of information technology and business solutions, for $3.9billion in cash. This acquisition is expected to provide customers a broader range of smartly delivered IT services and solutions and better position Dell for its own immediate and long-term growth and efficiency. Perot Systems will be integrated into primarily the Large Enterprise and Public segments for external segment reporting purposes. Because the acquisition has recently closed, Dell has not yet completed the purchase accounting and initial purchase price allocation. As of September30, 2009, Perot Systems reported stockholders equity of $1.5billion and tangible assets of $1.2billion. Dell expects to complete the purchase accounting and initial purchase price allocation in the fourth quarter of Fiscal 2010. Acquisition costs, including compensation related costs, will be expensed in the fourth quarter of Fiscal 2010. Dell has evaluated subsequent events and updated the financial statements for events through December3, 2009.