Dell 2011 Annual Report Download - page 104

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Table of Contents DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 15 — SEGMENT INFORMATION
Dell's four global business segments are Large Enterprise, Public, Small and Medium Business (“SMB”), and Consumer. Large Enterprise includes sales of IT
infrastructure and service solutions to large global and national corporate customers. Public includes sales to educational institutions, governments, health care
organizations, and law enforcement agencies, among others. SMB includes sales of complete IT solutions to small and medium-sized businesses. Consumer
includes sales to individual consumers and retailers around the world.
The business segments disclosed in the accompanying Consolidated Financial Statements are based on this organizational structure and information reviewed
by Dell's management to evaluate the business segment results. Dell's measure of segment operating income for management reporting purposes excludes
severance and facility closure expenses, broad based long-term incentives, acquisition-related charges, and amortization of intangibles.
The following table presents net revenue by Dell's reportable global segments as well as a reconciliation of consolidated segment operating income to Dell's
consolidated operating income:
Fiscal Year Ended
February 3,
2012 January 28,
2011 January 29,
2010
(in millions)
Net revenue:
Large Enterprise $ 18,457 $ 17,813 $ 14,285
Public 16,548 16,851 14,484
Small and Medium Business 15,166 14,473 12,079
Consumer 11,900 12,357 12,054
Total $ 62,071 $ 61,494 $ 52,902
Consolidated operating income:
Large Enterprise $ 1,854 $ 1,473 $ 819
Public 1,644 1,484 1,361
Small and Medium Business 1,665 1,477 1,040
Consumer 324 65 107
Consolidated segment operating income 5,487 4,499 3,327
Severance and facility actions and acquisition-related costs (a)(b) (313) (227) (597)
Broad based long-term incentives (a) (352) (350) (353)
Amortization of intangible assets (391) (349) (205)
Other (c) — (140) —
Total $ 4,431 $ 3,433 $ 2,172
____________________
(a) Broad based long-term incentives includes stock-based compensation and other long-term incentive awards, but excludes stock-based compensation related to acquisitions, which are
included in acquisition-related costs. See Note 14 of Notes to Consolidated Financial Statements for additional information.
(b) Acquisition-related costs consist primarily of retention payments, integration costs, and consulting fees.
(c) Other includes the $100 million settlement for the SEC investigation and a $40 million settlement for a securities litigation lawsuit that were both incurred in the first quarter of Fiscal
2011.
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