DELL INC. | |||||||||||
Segment Information | |||||||||||
(in millions, except percentages) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | % Growth Rates | ||||||||||
May 3, | May 4, | ||||||||||
2013(a) |
2012 | Yr. to Yr. | |||||||||
End User Computing ("EUC"): |
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Net Revenue: | |||||||||||
Desktops and Thin Client | $ | 3,273 | $ | 3,335 | (2 | %) | |||||
Mobility | 3,618 | 4,328 | (16 | %) | |||||||
Third-Party software and peripherals | 2,029 | 2,169 | (6 | %) | |||||||
Total EUC Revenue | 8,920 | 9,832 | (9 | %) | |||||||
External EUC revenue | 8,714 | 9,632 | |||||||||
Internal EUC revenue | 206 | 200 | |||||||||
Operating income: | |||||||||||
EUC operating income | 224 | 639 | (65 | %) | |||||||
% of segment revenue | 2.5 | % | 6.5 | % | |||||||
% of total segment operating income | 35 | % | 61 | % | |||||||
Enterprise Solutions Group ("ESG"): |
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Net Revenue: | |||||||||||
Servers, peripherals, and networking | 2,669 | 2,343 | 14 | % | |||||||
Storage | 424 | 473 | (10 | %) | |||||||
Total ESG revenue | 3,093 | 2,816 | 10 | % | |||||||
External ESG revenue | 2,959 | 2,681 | |||||||||
Internal ESG revenue | 134 | 135 | |||||||||
Operating income: | |||||||||||
ESG operating income | 136 | 79 | 71 | % | |||||||
% of segment revenue | 4.4 | % | 2.8 | % | |||||||
% of total segment operating income | 21 | % | 8 | % | |||||||
Dell Software Group: |
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Net Revenue: | |||||||||||
Total Dell Software Group revenue | 295 | 38 | NM | ||||||||
Operating income: | |||||||||||
Dell Software Group operating income | (85 | ) | (6 | ) | NM | ||||||
% of segment revenue | -28.7 | % | -16.0 | % | |||||||
% of total segment operating income | -13 | % | -1 | % | |||||||
Dell Services: |
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Net Revenue: | |||||||||||
Support and deployment | 1,202 | 1,176 | 2 | % | |||||||
Infrastructure, cloud, and security services | 612 | 550 | 11 | % | |||||||
Applications and business process services | 295 | 347 | (15 | %) | |||||||
Total Dell Services revenue | 2,109 | 2,073 | 2 | % | |||||||
External Dell Services revenue | 2,106 | 2,071 | |||||||||
Internal Dell Services revenue | 3 | 2 | |||||||||
Operating income: | |||||||||||
Dell Services operating income | $ | 370 | $ | 338 | 10 | % | |||||
% of segment revenue | 17.6 | % | 16.3 | % | |||||||
% of total segment operating income | 57 | % | 32 | % | |||||||
Reconciliation to consolidated net revenue: |
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Total segment revenue | $ | 14,417 | $ | 14,759 | |||||||
Less internal revenue | (343 | ) | (337 | ) | |||||||
Total consolidated net revenue | $ | 14,074 | $ | 14,422 | |||||||
Reconciliation to consolidated operating income: |
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Total segment operating income | $ | 645 | $ | 1,050 | |||||||
Unallocated corporate expenses (b) | (55 | ) | (40 | ) | |||||||
Amortization of intangible assets | (196 | ) | (110 | ) | |||||||
Severance and facility actions and acquisition-related costs | (80 | ) | (76 | ) | |||||||
Other (c) | (88 | ) | - | ||||||||
Total consolidated operating income | $ | 226 | $ | 824 | |||||||
(a) Includes the results of Dell's Fiscal 2013 acquisitions. | |
(b) Unallocated corporate expenses include broad based long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell's reporting segments. | |
(c) Other includes expenses associated with Dell's proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014. | |
Note: Percentage growth rates and ratios are calculated based on underlying data in thousands. |