Dell 2011 Annual Report Download - page 9

Table of Contents
For additional information about the above products and services, see “Part II — Item 7 — Management’s Discussion and Analysis of Financial Condition
and Results of Operations — Results of Operations — Revenue by Product and Services Categories.”
In early Fiscal 2013, we launched our newly formed Software Group, which will expand our ability to execute in strategic areas that are important to our
customers. The formation of this group, in conjunction with enhancements to our software capabilities across Dell, will help support our strategic
transformation as an end-to-end technology solutions company.
Financial Services
We offer or arrange various financing options and services for our Commercial and Consumer customers in the U.S. and Canada through Dell Financial
Services ("DFS"). DFS offers a wide range of financial services, including originating, collecting, and servicing customer receivables primarily related to the
purchase of Dell products. DFS offers private label credit financing programs to qualified Consumer and Commercial customers and offers leases and fixed-
term financing primarily to Commercial customers. Financing through DFS is one of many sources of funding that our customers may select. For additional
information about our financing arrangements, see “Part II - Item 7 - Management's Discussion and Analysis of Financial Condition and Results of
Operations - Dell Financial Services and Financing Receivables” and Note 4 of the Notes to Consolidated Financial Statements included in “Part II -Item 8 -
Financial Statements and Supplementary Data.”
During Fiscal 2012, we acquired Dell Financial Services Canada Limited from CIT Group Inc. and we announced our entry into a definitive agreement to
acquire CIT Vendor Finance's Dell-related assets and its sales and servicing functions in Europe. CIT Vendor Finance is currently a Dell financing preferred
vendor operating in more than 25 countries and will continue to support Dell for the transition period in Europe. CIT Vendor Finance will also continue to
provide financing programs with Dell in select countries around the world, including programs in Latin America, after completion of this transaction.
Product Development
We focus on developing scalable technologies that incorporate highly desirable features and capabilities at competitive prices. We employ a collaborative
approach to product design and development in which our engineers, with direct customer input, design innovative solutions and work with a global network
of technology companies to architect new system designs, influence the direction of future development, and integrate new technologies into our products. We
manage our research, development, and engineering ("RD&E") spending by targeting those innovations and products that we believe are most valuable to our
customers and by relying on the capabilities of our strategic relationships. Through this collaborative, customer-focused approach, we strive to deliver new
and relevant products to the market quickly and efficiently.
We are increasing our focus on research and development and will continue to shift our investment in RD&E activities to support initiatives that enhance our
enterprise solutions and services offerings. In Fiscal 2012, we opened the Dell Silicon Valley Research and Development Center, bringing the total number of
global research and development centers we operate to 12. Our total research, development, and engineering expenses were $856 million, $661 million, and
$624 million for Fiscal 2012, Fiscal 2011, and Fiscal 2010, respectively.
Manufacturing and Materials
Third parties manufacture the majority of the client products we sell under the Dell brand. We use contract manufacturers and manufacturing outsourcing
relationships to achieve our goals of generating cost efficiencies, delivering products faster, better serving our customers, and building a world-class supply
chain. Our manufacturing facilities are located in Austin, Texas; Penang, Malaysia; Xiamen, China; Hortolândia, Brazil; Chennai, India; and Lodz, Poland.
See “Part I - Item 2 - Properties” for information about our manufacturing and distribution locations.
Our manufacturing process consists of assembly, software installation, functional testing, and quality control. Testing and quality control processes are also
applied to components, parts, sub-assemblies, and systems obtained from third-party suppliers. Quality control is maintained through the testing of
components, sub-assemblies, and systems at various stages in the manufacturing process. Quality control also includes a burn-in period for completed units
after assembly, ongoing production reliability audits, failure tracking for early identification of production and component problems, and information from
customers obtained through services and support programs. We are certified to the ISO (International
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