Warranty and Deferred Extended Warranty Revenue (Notes)

12 Months Ended

Feb. 03, 2012

Extended Product Warranty Disclosure [Abstract]

Warranty and Deferred Extended Warranty Revenue

NOTE 9 — WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE

Dell records liabilities for its standard limited warranties at the time of sale for the estimated costs that may be incurred. The liability for standard warranties is included in Accrued and other current liabilities and Other non-current liabilities on the Consolidated Statements of Financial Position. Revenue from the sale of extended warranties is recognized over the term of the contract or when the service is completed, and the costs associated with these contracts are recognized as incurred. Deferred extended warranty revenue is included in deferred services revenue on the Consolidated Statements of Financial Position. Changes in Dell's liabilities for standard limited warranties and deferred services revenue related to extended warranties are presented in the following tables for the periods indicated:

	Fiscal Year Ended
	February 3, 2012			January 28, 2011			January 29, 2010
	(in millions)
Warranty liability:
Warranty liability at beginning of period	$	895		$	912		$	1,035
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties(a)(b)	1,025			1,046			987
Service obligations honored	(1,032		)	(1,063		)	(1,110		)
Warranty liability at end of period	$	888		$	895		$	912
Current portion	$	572		$	575		$	593
Non-current portion	316			320			319
Warranty liability at end of period	$	888		$	895		$	912
	Fiscal Year Ended
	February 3, 2012			January 28, 2011			January 29, 2010
	(in millions)
Deferred extended warranty revenue:
Deferred extended warranty revenue at beginning of period	$	6,416		$	5,910		$	5,587
Revenue deferred for new extended warranties(b)	4,301			3,877			3,481
Revenue recognized	(3,715		)	(3,371		)	(3,158		)
Deferred extended warranty revenue at end of period	$	7,002		$	6,416		$	5,910
Current portion	$	3,265		$	2,959		$	2,906
Non-current portion	3,737			3,457			3,004
Deferred extended warranty revenue at end of period	$	7,002		$	6,416		$	5,910

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^(a)  Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. Dell's warranty liability process does not differentiate between estimates made for pre-existing warranties and new warranty obligations.

^(b)  Includes the impact of foreign currency exchange rate fluctuations.