Dell 2005 Annual Report Download - page 60

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Table of Contents
NOTE 9 — Segment Information
Dell conducts operations worldwide and is managed in three geographic segments: the Americas, Europe, Middle East and Africa ("EMEA"),
and Asia Pacific-Japan ("APJ") regions. The Americas region, which is based in Round Rock, Texas, covers the U.S., Canada, and Latin
America. Within the Americas, Dell is further segmented into Business and U.S. Consumer. The Americas Business segment includes sales to
corporate, government, healthcare, education, and small and medium business customers while the U.S. Consumer segment includes sales
primarily to individual consumers. The EMEA region, which is based in Bracknell, England, covers Europe, the Middle East, and Africa. The
APJ region covers the Pacific Rim, including Australia and New Zealand, and is based in Singapore.
The accounting policies of Dell's reportable segments are the same as those described in the summary of significant accounting policies. Dell
allocates resources to and evaluates the performance of its segments based on operating income. Corporate expenses are included in Dell's
measure of segment operating income for management reporting purposes; however, certain charges totaling $442 million, incurred in the third
quarter of fiscal 2006, are not allocated to the business segments. The asset totals disclosed by geography are directly managed by those
regions and include accounts receivable, inventory, certain fixed assets, and certain other assets. Assets are not allocated specifically to the
Business and U.S. Consumer segments within the Americas. Corporate assets primarily include cash and cash equivalents, investments,
deferred tax assets, and other assets.
Dell is consolidating its U.S. Consumer segment into its Americas Business segment in the first quarter of fiscal 2007. Dell expects to
reevaluate its segment reporting at that time.
The table below presents information about Dell's reportable segments:
Fiscal Year Ended
February 3, January 28, January 30,
2006 2005 2004
(in millions)
Net revenue
Americas:
Business $ 28,481 $ 25,339 $ 21,888
U.S. Consumer 7,930 7,601 6,715
Total Americas 36,411 32,940 28,603
EMEA 12,873 10,787 8,495
Asia Pacific-Japan 6,624 5,478 4,346
Total net revenue $ 55,908 $ 49,205 $ 41,444
Segment operating income
Americas:
Business $ 3,015 $ 2,579 $ 2,194
U.S. Consumer 414 399 400
Total Americas 3,429 2,978 2,594
EMEA 857 818 637
Asia Pacific-Japan 503 458 313
Total consolidated segment operating income $ 4,789 $ 4,254 $ 3,544
57