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Warranty and Deferred Extended Warranty Revenue (Notes)
 3 Months Ended
May 04, 2012
Extended Product Warranty Disclosure [Abstract]  
Warranty and Deferred Extended Warranty Revenue
NOTE 10 — 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 in the Condensed 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 in the Condensed 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:
 
 
Three Months Ended
 
 
May 4,
2012
 
April 29,
2011
 
 
(in millions)
Warranty liability:
 
 

 
 

Warranty liability at beginning of period
 
$
888

 
$
895

Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties(a)(b)
 
283

 
293

Service obligations honored
 
(309
)
 
(257
)
Warranty liability at end of period
 
$
862

 
$
931

Current portion
 
$
558

 
$
620

Non-current portion
 
304

 
311

Warranty liability at end of period
 
$
862

 
$
931

 
 
 
 
 
 
 
Three Months Ended
 
 
May 4,
2012
 
April 29,
2011
 
 
(in millions)
Deferred extended warranty revenue:
 
 

 
 

Deferred extended warranty revenue at beginning of period
 
$
7,002

 
$
6,416

Revenue deferred for new extended warranties(b)
 
1,006

 
1,068

Revenue recognized
 
(964
)
 
(895
)
Deferred extended warranty revenue at end of period
 
$
7,044

 
$
6,589

Current portion
 
$
3,308

 
$
3,060

Non-current portion
 
3,736

 
3,529

Deferred extended warranty revenue at end of period
 
$
7,044

 
$
6,589

____________________
(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.