Dell 2004 Annual Report Download - page 57

Table of Contents
counterparties to these financial instruments. Dell does not anticipate nonperformance by any of the counterparties.
Dell's investments in debt securities are placed with high quality financial institutions and companies. Dell's investments in debt securities
primarily have maturities of less than five years. Management believes that no significant concentration of credit risk for investments exists for
Dell.
Dell markets and sells its products and services to large corporate clients, governments, healthcare and education accounts, as well as small-
to-medium businesses and individuals. Dell's receivables from such parties are well diversified.
Dell purchases a number of components from single sources. In some cases, alternative sources of supply are not available. In other cases,
Dell may establish a working relationship with a single source if Dell believes it is advantageous due to performance, quality, support, delivery,
capacity or price considerations. If the supply of a critical single-source material or component were delayed or curtailed, Dell's ability to ship
the related product in desired quantities and in a timely manner could be adversely affected. Even where alternative sources of supply are
available, qualification of the alternative suppliers and establishment of reliable supplies could result in delays and a possible loss of sales,
which may have an adverse effect on Dell's operating results.
NOTE 9 — Segment Information
Dell conducts operations worldwide and is managed in three geographic segments: the Americas, Europe, and Asia Pacific-Japan regions. The
Americas region, which is based in Round Rock, Texas, covers the U.S., Canada, and Latin America. Within the Americas, Dell is further
segmented into Business and U.S. Consumer. The Americas Business segment includes sales to corporate, government, healthcare,
education, and small and medium business customers while the U.S. Consumer segment includes sales primarily to individual consumers. The
European region, which is based in Bracknell, England, covers Europe, the Middle East, and Africa. The Asia Pacific-Japan region covers the
Pacific Rim, including Australia and New Zealand, and is based in Singapore.
The accounting policies of Dell's reportable segments are the same as those described in the summary of significant accounting policies. Dell
allocates resources to and evaluates the performance of its segments based on operating income. Corporate expenses are included in Dell's
measure of segment operating income for management reporting purposes. The asset totals disclosed by geography are directly managed by
those regions and include accounts receivable, inventory, certain fixed assets, and certain other assets. Assets are not allocated specifically to
the Business and U.S. Consumer segments within the Americas. Corporate assets primarily include cash and cash equivalents, investments,
deferred tax assets, and other assets. 54