Item 8.01 - Other Events.
Dell is filing this Current Report on Form 8-K to revise 1) its historical
operating segment information and 2) the presentation of its products and
services revenue and related cost of net revenue classification, originally
contained in the financial statements and elsewhere in its Annual Report on Form
10-K for the year ended January 30, 2009 ("Fiscal 2009 Form 10-K"), to
correspond with its current presentations.
As previously disclosed, effective the first quarter of Fiscal 2010, Dell
completed its reorganization of its geographic commercial segments [Americas
Commercial; Europe, Middle East, and Africa ("EMEA") Commercial; and
Asia-Pacific Japan ("APJ") Commercial], to global business units [Large
Enterprise, Public, and Small and Medium Business ("SMB")], reflecting the
impact of globalization on Dell's customer base. Dell's current four global
business segments are Large Enterprise, Public, Small and Medium Business, and
our existing Consumer segment. As a result, Dell reported its new business
segments in its Quarterly Report on Form 10-Q for the period ended May 1, 2009
("First Quarter Fiscal 2010 Form 10-Q"). Large Enterprise includes sales of IT
infrastructure and service solutions to large global and national corporate
customers. Public is comprised of sales to educational institutions,
governments, health care organizations, and law enforcement agencies, among
others. SMB consists of sales of complete IT solutions to small and medium
businesses. Consumer contains sales for individual consumers and retailers
around the world. Reference to Commercial business refers to Large Enterprise,
Public, and Small and Medium Business ("Commercial").
Dell expects its enhanced services revenue to exceed 10% of total net revenue in
Fiscal 2010. As a result, in its First Quarter Fiscal 2010 Form 10-Q, Dell
separately disclosed in the Condensed Consolidated Statements of Income net
revenue and cost of net revenue for services as required by the U.S. Securities
Exchange Commission ("SEC") Regulation S-X article 210.5-03 "Income Statements."
To maintain comparability among the periods, Dell has revised the Fiscal 2009,
Fiscal 2008, and Fiscal 2007 presentation of the components of net revenue and
cost of net revenue presented in the Consolidated Statements of Income from its
Fiscal 2009 Form 10-K in order to disclose net revenue and cost of net revenue
for services. In conjunction with separating enhanced services revenue and
related cost, Dell elected to classify revenue and cost of net revenue related
to standalone software sold with post contract customer support ("PCS") in the
same line item as enhanced services on Dell's Consolidated Statements of Income.
Services revenue and cost of services revenue captions on the Consolidated
Statements of Income include Dell's enhanced services and software from Dell's
software and peripherals product category.
Exhibit 99.1, attached hereto and incorporated by reference herein, contains
Items from the Fiscal 2009 Form 10-K, updated to reflect revised operating
segment and revenue and cost of revenue classification information. Dell's First
Quarter Fiscal 2010 Form 10-Q reflects Dell's currently reportable operating
segments and revenue and cost of revenue classification information.
The updates to the Fiscal 2009 Form 10-K information relate solely to the
presentation of operating segment-specific information and net revenue and cost
of net revenue classification information as described above and do not affect
Dell's previously reported consolidated financial condition, results of
operations, or cash flows. The Fiscal 2009 Form 10-K has not been otherwise
updated for events or developments that occurred subsequent to the filing of the
Fiscal 2009 Form 10-K with the Securities and Exchange Commission. For material
developments since the filing of the Fiscal 2009 Form 10-K, refer to Dell's
First Quarter Fiscal 2010 Form 10-Q.
Item 9.01 - Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 23.1 - Consent of PricewaterhouseCoopers LLP.
Exhibit 99.1 - Items from Annual Report on Form 10-K for the year ended January 30,
2009, updated to reflect revised operating segment information and
revised revenue and cost of revenue information: "Part I - Item 1 -
Business;" "Part II - Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations;" "Part II - Item 8 -
Financial Statements and Supplementary Data."
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