Condensed Consolidated Statement of Financial Position (in millions) Assets: Cash & cash equivalents $ 14,061 $ 14,623 $ 13,293 $ 13,852 $ 12,814 $ 10,635 $ 13,913 $ 13,852 Short-term investments 418 509 545 966 901 373 452 966 Accounts receivable, net 6,196 6,752 6,690 6,476 6,289 5,837 6,493 6,476 Financing receivables, net 3,205 3,385 3,326 3,327 3,200 2,706 3,643 3,327 Inventories, net 1,276 1,346 1,397 1,404 1,472 1,051 1,301 1,404 Other 3,217 3,043 3,005 3,423 3,369 3,643 3,219 3,423 Total current assets 28,373 29,658 28,256 29,448 28,045 24,245 29,021 29,448 PP&E, net 1,987 2,064 2,123 2,124 2,119 2,181 1,953 2,124 Investments 762 1,048 2,183 3,404 3,501 781 704 3,404 Long-term financing receivable, net 1,123 1,252 1,279 1,372 1,342 332 799 1,372 Other non-current assets 7,543 7,582 8,202 8,185 8,282 6,113 6,122 8,185 Total assets: 39,788 41,604 42,043 44,533 43,289 33,652 38,599 44,533 Liabilities & Stockholders Equity: Short-term borrowings 816 1,316 1,831 2,867 3,186 663 851 2,867 Accounts payable 10,442 11,628 11,107 11,656 10,970 11,373 11,293 11,656 Accrued and other 3,590 3,823 3,816 3,934 3,076 3,884 4,181 3,934 Short-term deferred services revenue 3,282 3,427 3,465 3,544 3,582 3,040 3,158 3,544 Total current liabilities 18,130 20,194 20,219 22,001 20,814 18,960 19,483 22,001 Long-term debt 6,794 6,424 6,430 6,387 5,813 3,417 5,146 6,387 Long-term deferred services revenue 3,608 3,723 3,744 3,836 3,837 3,029 3,518 3,836 Other non-current liabilities 2,886 2,927 2,987 3,392 3,468 2,605 2,686 3,392 Total liabilities: 31,418 33,268 33,380 35,616 33,932 28,011 30,833 35,616 Redeemable common stock and capital in excess of par - - - - - - - - Stockholder's equity: 8,370 8,336 8,663 8,917 9,357 5,641 7,766 8,917 Total liabilities & equity: 39,788 41,604 42,043 44,533 43,289 33,652 38,599 44,533
Condensed Consolidated Statement of Cash Flows (in millions) Q1-FY12 Q2-FY12 Q3-FY12 Q4-FY12 Q1-FY13 FY10 1 FY11 FY12 Cash flows from operating activities: Net income: $ 945 $ 890 $ 893 $ 764 $ 635 $ 1,433 $ 2,635 $ 3,492 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 216 230 241 249 248 852 970 936 Stock-based compensation 99 82 80 101 95 312 332 362 Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies - (9) (10) 14 (10) 59 (4) (5) Deferred income taxes (63) 7 (35) 110 47 (52) (45) 19 Provision for doubtful accounts - including financing receivables 47 70 50 67 63 429 382 234 Other (5) 5 46 (25) (5) 102 26 21 Changes in assets and liabilities, net of effects from acquisitions: Accounts receivable 471 (566) (95) 137 161 (660) (707) (53) Financing receivables 21 (100) (83) (210) 71 (1,085) (709) (372) Inventories 38 (69) (15) (6) (68) (183) (248) (52) Other assets 110 97 16 (251) 48 (225) 516 (28) Accounts payable (925) 1,186 (492) 558 (671) 2,833 (151) 327 Deferred services revenue 191 212 137 180 33 135 551 720 Accrued and other liabilities (680) 339 118 149 (785) (44) 421 (74) Change in cash from operating activities: 465 2,374 851 1,837 (138) 3,906 3,969 5,527 Cash flows from investing activities: Investments: Purchases (240) (541) (1,638) (2,237) (673) (1,383) (1,360) (4,656) Maturities and sales 222 210 424 579 640 1,538 1,358 1,435 Capital expenditures (137) (159) (214) (165) (142) (367) (444) (675) Proceeds from sale of facility and land 12 - - 2-16 18 14 Purchase of financing receivables - - - - - - (430) - Collections on purchased financing receivables 67 68 69 74 55-69 278 Acquisition of business, net of cash received (1,473) (428) (663) 2 (245) (3,613) (376) (2,562) Change in cash from investing activities: (1,549) (850) (2,022) (1,745) (365) (3,809) (1,165) (6,166) Cash flows from financing activities: Repurchase of common stock (450) (1,130) (600) (537) (324) - (800) (2,717) Issuance of common stock under employee plans 10 19 5 6 38 2 12 40 Issuance (repayment) of commercial paper (maturity of 90 days or less), net - - - 635 13 76 (176) 635 Proceeds from debt 1,930 503 884 733 596 2,058 3,069 4,050 Repayments of debt (323) (370) (362) (380) (863) (122) (1,630) (1,435) Other 3 (1) 1 1 8 (2) 2 4 Change in cash from financing activities: 1,170 (979) (72) 458 (532) 2,012 477 577 Effect of exchange rate changes on cash and cash equivalents 62 17 (87) 9 (3) 174 (3) 1 Change in cash and cash equivalents: 148 562 (1,330) 559 (1,038) 2,283 3,278 (61) Cash and cash equivalents at beginning of period: 13,913 14,061 14,623 13,293 13,852 8,352 10,635 13,913 Cash and cash equivalents at end of period: 14,061 14,623 13,293 13,852 12,814 10,635 13,913 13,852 1. Prior period amounts have been reclassified to conform to the current year presentation.
Selected Financial Data & Ratios (in millions, except per share data and ratios) (Unaudited) Liquidity: Current ratio 1.57 1.47 1.40 1.34 1.35 1.28 1.49 1.34 Quick ratio 1.49 1.40 1.33 1.27 1.28 1.22 1.42 1.27 Cash conversion cycle d (31) (34) (31) (36) (32) (36) (33) (36) Days supply in inventory 10 10 11 11 12 8 9 11 Days of sales outstanding a 40 42 42 42 43 38 40 42 Days in accounts payable 81 86 84 89 87 82 82 89 Cash flow (millions): Cash flow from operations $ 465 $ 2,374 $ 851 $ 1,837 $ (138) $3,906 $3,969 $5,527 Net free cash flows b $ 307 $ 2,315 $ 720 $ 1,882 $ (351) $4,624 $4,234 $5,224 Cash and investments $15,241 $16,180 $16,021 $18,222 $17,216 $11,789 $15,069 $18,222 Shares repurchased (millions) 31 71 40 36 17-57 178 Profitability: Return on total capital c 24% 22% 21% 18% 15% 17% 21% 20% Gross margin 22.9% 22.5% 22.6% 21.1% 21.3% 17.5% 18.5% 22.3% Opex as percentage of revenue 14.8% 15.2% 15.2% 15.3% 15.6% 13.4% 12.9% 15.2% Operating margin 8.1% 7.3% 7.4% 5.8% 5.7% 4.1% 5.6% 7.1% Income tax rate 19.2% 18.4% 16.7% 15.8% 19.8% 29.2% 21.3% 17.6% Net profit margin 6.3% 5.7% 5.8% 4.8% 4.4% 2.7% 4.3% 5.6% WAS -- Diluted 1,923 1,871 1,828 1,796 1,774 1,962 1,955 1,853 EPS (diluted) $ 0.49 $ 0.48 $ 0.49 $ 0.43 $ 0.36 $0.73 $1.35 $1.88 Growth: Units Y/Y 0% 0% -1% 5% -3% -6% 12% 1% Revenue Y/Y: (e) 1% 1% 0% 2% -4% -13% 16% 1% Global Large Enterprise 6% 1% 3% 5% -3% Global Public -2% -3% -1% -1% -4% Global Small and Medium Business 8% 7% 5% 10% 4% Global Consumer -7% -1% -8% -4% -12% % of Total Revenue by Business Unit: Global Large Enterprise 31% 30% 29% 31% 31% 29% 30% Global Public 24% 28% 28% 24% 24% 27% 26% Global Small and Medium Business 22% 21% 22% 22% 24% 21% 22% Global Consumer 23% 21% 21% 23% 21% 23% 22% % of Total Revenue by Product: Servers and Networking 13% 13% 14% 14% 14% 11% 12% 13% Storage 3% 3% 3% 3% 3% 4% 4% 3% Services 13% 13% 14% 14% 14% 11% 12% 13% Software & Peripherals 17% 16% 16% 16% 17% 18% 17% 17% Mobility 32% 31% 31% 30% 29% 31% 31% 31% Desktop PCs 22% 24% 22% 23% 23% 25% 24% 23% EPS Y/Y (diluted) 188% 71% 17% -10% -27% -42% 85% 39% a DSO includes the effect of product costs related to in-transit customer shipments that are classified in other current assets. b Free cash flows: Cash flows from operations less capital expenditures less tax benefit from employee stock plans plus on balance-sheet funding c Return on total capital is an annualized calculation of pre-tax earnings and interest expense over the quarter's average of long-term liabilities and stockholders' equity. d Results for fiscal year end are based on the 4th quarter of the same year and not for the full fiscal year. e Segment Results for Fiscal 2012 have been recast to conform to segment realignments that were completed during the first quarter of Fiscal 2013. See Supplemental Segment Information at the end of these financial tables for more information. Note: Percentage growth rates and ratios are calculated based on underlying data in thousands and rounded per share data.
Condensed Consolidated Statement of Operations (in millions) Income Statement: Net revenue $ 15,017 $ 15,658 $ 15,365 $ 16,031 $ 14,422 $ 52,902 $ 61,494 $ 62,071 Sequential Growth -4% 4% -2% 4% -10% Y/Y Growth 1% 1% 0% 2% -4% -13% 16% 1% Cost of revenue 11,585 12,133 11,896 12,646 11,355 43,641 50,098 48,260 Gross margin 3,432 3,525 3,469 3,385 3,067 9,261 11,396 13,811 SG&A 2,025 2,174 2,107 2,218 2,009 6,465 7,302 8,524 R&D 195 205 220 236 234 624 661 856 Total operating expenses 2,220 2,379 2,327 2,454 2,243 7,089 7,963 9,380 Operating income 1,212 1,146 1,142 931 824 2,172 3,433 4,431 Investment and other income, net (42) (55) (70) (24) (32) (148) (83) (191) Income before taxes 1,170 1,091 1,072 907 792 2,024 3,350 4,240 Income tax provision 225 201 179 143 157 591 715 748 Net income 945 890 893 764 635 1,433 2,635 3,492 Sequential Growth 2% -6% 0% -14% -17% Y/Y Growth 177% 63% 9% -18% -33% -42% 84% 33% EPS: Basic $ 0.50 $ 0.48 $ 0.49 $ 0.43 $ 0.36 $ 0.73 $ 1.36 $ 1.90 Diluted $ 0.49 $ 0.48 $ 0.49 $ 0.43 $ 0.36 $ 0.73 $ 1.35 $ 1.88 Weighted Average Shares Outstanding: Basic 1,908 1,858 1,813 1,778 1,759 1,954 1,944 1,838 Diluted 1,923 1,871 1,828 1,796 1,774 1,962 1,955 1,853 Percentage of Net Revenue: Gross margin 22.9% 22.5% 22.6% 21.1% 21.3% 17.5% 18.5% 22.3% Selling, general and administrative 13.5% 13.9% 13.8% 13.8% 13.9% 12.2% 11.9% 13.7% Research, development and engineering 1.3% 1.3% 1.4% 1.5% 1.7% 1.2% 1.0% 1.5% Total operating expenses 14.8% 15.2% 15.2% 15.3% 15.6% 13.4% 12.9% 15.2% Operating income 8.1% 7.3% 7.4% 5.8% 5.7% 4.1% 5.6% 7.1% Income before income taxes 7.8% 7.0% 7.0% 5.7% 5.5% 3.8% 5.4% 6.8% Net income 6.3% 5.7% 5.8% 4.8% 4.4% 2.7% 4.3% 5.6% Income tax rate 19.2% 18.4% 16.7% 15.8% 19.8% 29.2% 21.3% 17.6% Revenues by Business Unit: a 15,017 15,658 15,365 16,031 14,422 52,902 61,494 62,071 Global Large Enterprise 4,587 4,677 4,540 4,982 4,436 18,111 18,786 Global Public 3,621 4,329 4,287 3,833 3,466 16,377 16,070 Global Small and Medium Business 3,355 3,306 3,326 3,560 3,477 12,608 13,547 Global Consumer 3,454 3,346 3,212 3,656 3,043 14,398 13,668 Operating income by Business Unit: 1,473 1,409 1,366 1,239 1,094 3,327 4,499 5,487 Global Large Enterprise 516 460 446 467 402 1,490 1,889 Global Public 352 466 454 312 271 1,446 1,584 Global Small and Medium Business 435 380 367 399 389 1,383 1,581 Global Other -- Consumer Special Charges 170 103 99 61 32 180 433 Revenues by product: 15,017 15,658 15,365 16,031 14,422 52,902 61,494 62,071 Servers and Networking 1,973 2,054 2,089 2,220 2,017 6,032 7,609 8,336 Storage 481 502 460 500 444 2,192 2,295 1,943 Services 1,984 2,036 2,123 2,179 2,071 5,622 7,673 8,322 Software & Peripherals 2,567 2,569 2,528 2,558 2,386 9,499 10,261 10,222 Mobility 4,716 4,761 4,750 4,877 4,236 16,610 18,971 19,104 Desktop PCs 3,296 3,736 3,415 3,697 3,268 12,947 14,685 14,144 a Segment Results for Fiscal 2012 have been recast to conform to segment realignments that were completed during the first quarter of Fiscal 2013. See Supplemental Segment Information at the end of these financial tables for more information. Note: Percentage growth rates and ratios are calculated based on underlying data in thousands and rounded per share data.
Reconciliation of Non-GAAP Financial Measures (in millions, except per share data and percentages) GAAP gross margin $ 3,432 $ 3,525 $ 3,469 $ 3,385 $ 3,067 $ 9,261 $ 11,396 $ 13,811 Amortization of intangibles 71 74 77 83 88 151 278 305 Severance and facility actions and acquisition-related 8 26-15 12 237 57 49 Non-GAAP gross margin 3,511 3,625 3,546 3,483 3,167 9,649 11,731 14,165 GAAP operating expenses 2,220 2,379 2,327 2,454 2,243 7,089 7,963 9,380 Amortization of intangibles (21) (21) (23) (21) (22) (54) (71) (86) Severance and facility actions and acquisition-related (64) (61) (46) (93) (64) (360) (170) (264) Other (1) - - - - (140) - Non-GAAP operating expenses 2,135 2,297 2,258 2,340 2,157 6,675 7,582 9,030 GAAP operating income 1,212 1,146 1,142 931 824 2,172 3,433 4,431 Amortization of intangibles 92 95 100 104 110 205 349 391 Severance and facility actions and acquisition-related 72 87 46 108 76 597 227 313 Other (1) - - - - 140 - Non-GAAP operating income 1,376 1,328 1,288 1,143 1,010 2,974 4,149 5,135 GAAP net income 945 890 893 764 635 1,433 2,635 3,492 GAAP earnings per common share - diluted $ 0.49 $ 0.48 $ 0.49 $ 0.43 $ 0.36 $ 0.73 $ 1.35 $ 1.88 Amortization of intangibles 92 95 100 104 110 205 349 391 Severance and facility actions and acquisition-related 72 87 46 108 76 597 227 313 Other (1) - - - - - - 68 - Aggregate adjustment for income taxes (59) (66) (56) (63) (60) (181) (173) (244) Non-GAAP adjustments per common share - diluted $ 0.06 $ 0.06 $ 0.05 $ 0.08 $ 0.07 $ 0.32 $ 0.24 $ 0.25 Non-GAAP net income 1,050 1,006 983 913 761 2,054 3,106 3,952 Non-GAAP earnings per commong share - diluted $ 0.55 $ 0.54 $ 0.54 $ 0.51 $ 0.43 $ 1.05 $ 1.59 $ 2.13 GAAP Diluted WAS 1,923 1,871 1,828 1,796 1,774 1,962 1,955 1,853 Percentage of Total Net Revenue: GAAP gross margin 22.9% 22.5% 22.6% 21.1% 21.3% 17.5% 18.5% 22.3% Non-GAAP adjustment 0.5% 7.0% 0.5% 0.6% 0.7% 0.7% 0.6% 0.5% Non-GAAP gross margin 23.4% 23.2% 23.1% 21.7% 22.0% 18.2% 19.1% 22.8% GAAP operating expenses 14.8% 15.2% 15.2% 15.3% 15.6% 13.4% 12.9% 15.2% Non-GAAP adjustment -0.6% -0.5% -0.5% -0.7% -0.6% -0.8% -0.6% -0.7% Non-GAAP operating expenses 14.2% 14.7% 14.7% 14.6% 15.0% 12.6% 12.3% 14.5% GAAP operating income 8.1% 7.3% 7.4% 5.8% 5.7% 4.1% 5.6% 7.1% Non-GAAP adjustment 1.1% 1.2% 1.0% 1.3% 1.3% 1.5% 1.1% 1.2% Non-GAAP operating income 9.2% 8.5% 8.4% 7.1% 7.0% 5.6% 6.7% 8.3% Note: Percentage growth rates and ratios are calculated based on underlying data in thousands. (1) Other for Q1 FY11 includes amounts for the $100 million settlement of the SEC investigation and a $40 million settlement for a securities litigation matter, which are both recorded in operating expenses. Other for Q3 FY11 consists of Dell's receipt of a $72 million merger termination fee, which is recorded in Interest and Other, Net.
Dell Inc Supplemental Segment Information (in millions, unaudited) Fiscal 2011 Three Months Ended Fiscal Year Ended April 30, 2010 July 30, 2010 October 29, 2010 January 28, 2011 January 28, 2011 As Reported Recast Variance As Reported Recast Variance As Reported Recast Variance As Reported Recast Variance As Reported Recast Variance Net Revenue by Global Segment (1) : Large Enterprise $ 4,246 $ 4,341 $ 95 $ 4,549 $ 4,618 $ 69 $ 4,326 $ 4,389 $ 63 $ 4,692 $ 4,763 $ 71 $ 17,813 $ 18,111 $ 298 Public 3,856 3,708 (148) 4,580 4,467 (113) 4,442 4,340 (102) 3,973 3,862 (111) 16,851 16,377 (474) Small and Medium Business 3,524 3,096 (428) 3,535 3,083 (452) 3,665 3,179 (486) 3,749 3,250 (499) 14,473 12,608 (1,865) Consumer.. 3,248 3,729 481 2,870 3,366 496 2,961 3,486 525 3,278 3,817 539 12,357 14,398 2,041 Consolidated net revenue $ 14,874 $ 14,874 $ - $ 15,534 $ 15,534 $ - $ 15,394 $ 15,394 $ - $ 15,692 $ 15,692 $ - $ 61,494 $ 61,494 $ - Percentage of Total Net Revenue (1) : Large Enterprise 28% 29% 1% 29% 30% 1% 28% 28% 0% 30% 30% 0% 29% 29% 0% Public 26% 25% -1% 30% 29% -1% 29% 28% -1% 25% 25% 0% 27% 27% 0% Small and Medium Business 24% 21% -3% 23% 20% -3% 24% 21% -3% 24% 21% -3% 24% 21% -3% Consumer.. 22% 25% 3% 18% 21% 3% 19% 23% 4% 21% 24% 3% 20% 23% 3% Consolidated Operating Income (1) : Large Enterprise $ 283 $ 293 $ 10 $ 288 $ 289 $ 1 $ 400 $ 398 $ (2) $ 502 $ 510 $ 8 $ 1,473 $ 1,490 $ 17 Public 298 280 (18) 369 363 (6) 451 450 (1) 366 353 (13) 1,484 1,446 (38) Small and Medium Business 313 301 (12) 323 298 (25) 391 365 (26) 450 419 (31) 1,477 1,383 (94) Consumer.. 17 37 20 (21) 9 30-29 29 69 105 36 65 180 115 Segment operating income. $ 911 $ 911 $ - $ 959 $ 959 $ - $ 1,242 $ 1,242 $ - $ 1,387 $ 1,387 $ - $ 4,499 $ 4,499 $ - Fiscal 2012 Three Months Ended Fiscal Year Ended April 29, 2011 July 29, 2011 October 28, 2011 February 3, 2012 February 3, 2012 As Reported Recast Variance As Reported Recast Variance As Reported Recast Variance As Reported Recast Variance As Reported Recast Variance Net Revenue by Global Segment (1) : Large Enterprise $ 4,477 $ 4,587 $ 110 $ 4,584 $ 4,677 $ 93 $ 4,487 $ 4,540 $ 53 $ 4,909 $ 4,982 $ 73 $ 18,457 $ 18,786 $ 329 Public 3,767 3,621 (146) 4,457 4,329 (128) 4,375 4,287 (88) 3,949 3,833 (116) 16,548 16,070 (478) Small and Medium Business 3,768 3,355 (413) 3,709 3,306 (403) 3,712 3,326 (386) 3,977 3,560 (417) 15,166 13,547 (1,619) Consumer.. 3,005 3,454 449 2,908 3,346 438 2,791 3,212 421 3,196 3,656 460 11,900 13,668 1,768 Consolidated net revenue $ 15,017 $ 15,017 $ - $ 15,658 $ 15,658 $ - $ 15,365 $ 15,365 $ - $ 16,031 $ 16,031 $ - $ 62,071 $ 62,071 $ - Percentage of Total Net Revenue (1) : Large Enterprise 30% 31% 1% 29% 30% 1% 29% 29% 0% 30% 31% 1% 30% 30% 0% Public 25% 24% -1% 28% 28% 0% 29% 28% -1% 25% 24% -1% 27% 26% -1% Small and Medium Business 25% 22% -3% 24% 21% -3% 24% 22% -2% 25% 22% -3% 24% 22% -2% Consumer.. 20% 23% 3% 19% 21% 2% 18% 21% 3% 20% 23% 3% 19% 22% 3% Consolidated Operating Income (1) : Large Enterprise $ 504 $ 516 $ 12 $ 448 $ 460 $ 12 $ 441 $ 446 $ 5 $ 461 $ 467 $ 6 $ 1,854 $ 1,889 $ 35 Public 370 352 (18) 484 466 (18) 463 454 (9) 327 312 (15) 1,644 1,584 (60) Small and Medium Business 463 435 (28) 404 380 (24) 386 367 (19) 412 399 (13) 1,665 1,581 (84) Consumer.. 136 170 34 73 103 30 76 99 23 39 61 22 324 433 109 Segment operating income. $ 1,473 $ 1,473 $ - $ 1,409 $ 1,409 $ - $ 1,366 $ 1,366 $ - $ 1,239 $ 1,239 $ - $ 5,487 $ 5,487 $ - (1) In the first quarter of Fiscal 2013, Dell made certain segment realignments in order to conform to the way Dell internally manages segment performance. These realignments affected all of Dell's operating segments, but primarily consisted of the transfer of small office business customers from the Small and Medium Business segment to the Consumer Segment. Dell has recast prior period amounts to provide visibility and comparability. None of these changes impacts Dell's previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share. 7
Historical PC Share* IDC Worldwide Quarterly PC Tracker Current Rank Current Year Share Annual Share Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 WW Client PCs 3 13% 13% 12% 13% 11% 15% 16% 17% 18% 16% 14% 14% 13% 13% 13% USA 2 23% 22% 22% 23% 22% 29% 32% 35% 36% 33% 29% 29% 24% 23% 22% EMEA 3 10% 11% 9% 11% 10% 9% 10% 11% 12% 12% 11% 11% 9% 10% 11% Asia Pacific 4 10% 11% 10% 11% 9% 5% 6% 6% 7% 7% 7% 9% 8% 10% 10% Japan 5 10% 10% 9% 9% 8% 7% 9% 11% 12% 14% 14% 14% 12% 10% 9% Desktop PC 3 13% 13% 13% 14% 12% 15% 17% 18% 17% 16% 15% 15% 13% 14% 14% Portable PC 4 12% 13% 11% 12% 11% 15% 16% 17% 18% 17% 14% 14% 12% 12% 12% x86** 2 28% 26% 26% 26% 26% 22% 25% 25% 26% 26% 25% 27% 27% 28% 26% Consumer 5 9% 9% 8% 9% 8% 10% 12% 13% 12% 11% 8% 9% 9% 9% 9% SMB 1 2 13% 13% 12% 14% 12% 12% 13% 14% 15% 14% 14% 14% 12% 13% 13% Public 3 17% 18% 17% 17% 15% 19% 15% 17% 21% 17% 19% 20% 21% 18% 17% Large Enterprise 2 3 27% 26% 25% 28% 23% 30% 30% 31% 32% 25% 29% 31% 32% 29% 27% *PC's include Desktops, Notebooks, data as of May 2012 **x86 is preliminary Q1 IDC data 1 SMB includes companies with less than 500 employees 2 Large Enterprise includes companies more than 500 employees