Dell 2008 Annual Report Download - page 10

Table of Contents
development activities. The inventions claimed in our patents and patent applications cover aspects of our current and possible future computer
system products, manufacturing processes, and related technologies. Our product, business method, and manufacturing process patents may establish
barriers to entry in many product lines. While we use our patented inventions and also license them to others, we are not substantially dependent on
any single patent or group of related patents. We have entered into a variety of intellectual property licensing and cross-licensing agreements. We
have also entered into various software licensing agreements with other companies. We anticipate that our worldwide patent portfolio will be of
value in negotiating intellectual property rights with others in the industry.
We have obtained U.S. federal trademark registration for the DELL word mark and the Dell logo mark. We own registrations for 71 of our other
marks in the U.S. At January 30, 2009, we had pending applications for registration of 45 other trademarks. We believe that establishment of the
DELL word mark and logo mark in the U.S. is material to our operations. We have also applied for or obtained registration of the DELL mark and
several other marks in approximately 184 other countries.
From time to time, other companies and individuals assert exclusive patent, copyright, trademark, or other intellectual property rights to technologies
or marks that are important to the technology industry or our business. We evaluate each claim relating to our products and, if appropriate, seek a
license to use the protected technology. The licensing agreements generally do not require the licensor to assist us in duplicating its patented
technology, nor do these agreements protect us from trade secret, copyright, or other violations by us or our suppliers in developing or selling these
products.
Employees
At the end of Fiscal 2009, we had approximately 78,900 total employees (consisting of 76,500 regular employees and 2,400 temporary employees),
compared to approximately 88,200 total employees (consisting of 82,700 regular employees and 5,500 temporary employees) at the end of Fiscal
2008. Approximately 25,900 of the regular employees at the end of Fiscal 2009 were located in the U.S., and approximately 50,600 regular
employees were located in other countries.
We continue to comprehensively review costs across all processes and organizations, from product development and procurement through service
and support delivery, with a goal to reduce costs, simplify structure, eliminate redundancies, and better align cost of goods sold and operating
expenses with the current business environment and strategic growth opportunities. As part of this overall effort, we expect to further reduce our
overall headcount; however, we may add headcount in certain strategic growth areas. We also may realign, sell, or close additional facilities
depending on a number of factors, including end-user demand, capabilities, and our migration to a more variable cost manufacturing model. These
actions will result in additional business realignment costs in the future, although no plans were finalized at January 30, 2009.
Government Regulation and Environment
Our business is subject to regulation by various federal and state governmental agencies. Such regulation includes the radio frequency emission
regulatory activities of the U.S. Federal Communications Commission; the anti-trust regulatory activities of the U.S. Federal Trade Commission, the
Department of Justice, and the European Union; the consumer protection laws of the Federal Trade Commission; the export regulatory activities of
the U.S. Department of Commerce and the U.S. Department of Treasury; the import regulatory activities of U.S. Customs and Border Protection; the
product safety regulatory activities of the U.S. Consumer Product Safety Commission; the investor protection and capital markets regulatory
activities of the Securities and Exchange Commission; and environmental regulation by a variety of regulatory authorities in each of the areas in
which we conduct business. We are also subject to regulation in other countries where we conduct business. We were not assessed any
environmental fines, nor did we have any material environmental remediation or other environmental costs, during Fiscal 2009.
Sustainability
Our focus on business efficiencies and customer satisfaction drives our environmental stewardship program in all areas of our business — reducing
product energy consumption, reducing or eliminating materials for disposal, prolonging product life spans, and providing effective and convenient
equipment recovery solutions. We are committed to becoming the "greenest technology company on the planet" — a long-term initiative we
announced in June 2007. This multi-faceted campaign focuses on driving internal business innovations and efficiencies; enhancing customer
satisfaction; and partnering with suppliers, stakeholders, and people who care about the environment.
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