DELL INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions) February 1, 2013 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Short-term financing receivables, net Inventories, net Other current assets Total current assets Property, plant, and equipment, net Long-term investments Long-term financing receivables, net Goodwill Purchased intangible assets, net Other non-current assets Total assets LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Short-term debt Accounts payable Accrued and other Short-term deferred revenue Total current liabilities Long-term debt Long-term deferred revenue Other non-current liabilities Total liabilities Commitments and contingencies (Note 10) Stockholders equity: Common stock and capital in excess of $.01 par value; shares authorized: 7,000; shares issued: 3,413 and 3,390, respectively; shares outstanding: 1,738 and 1,761, respectively Treasury stock at cost: 1,200 and 1,154 shares, respectively Retained earnings Accumulated other comprehensive loss Total Dell stockholders equity Noncontrolling interest Total stockholders equity $ 3,843 11,579 3,644 4,373 23,439 5,242 3,971 4,187 36,839 $ 2,867 11,656 3,740 3,738 22,001 6,387 3,855 3,373 35,616 $ $ 12,569 208 6,629 3,213 1,382 3,967 27,968 2,126 2,565 1,349 9,304 3,374 854 47,540 $ $ 13,852 966 6,476 3,327 1,404 3,423 29,448 2,124 3,404 1,372 5,838 1,857 490 44,533 February 3, 2012

12,554 (32,145) 30,330 (59) 10,680 21 10,701

12,187 (31,445) 28,236 (61) 8,917 8,917

Total liabilities and stockholders equity

47,540

44,533

The accompanying notes are an integral part of these consolidated financial statements.

62 Table of Contents DELL INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) Fiscal Year Ended February 1, 2013 Net revenue: Products Services, including software related Total net revenue Cost of net revenue: Products Services, including software related Total cost of net revenue Gross margin Operating expenses: Selling, general, and administrative Research, development, and engineering Total operating expenses Operating income Interest and other, net Income before income taxes Income tax provision Net income Earnings per share: Basic Diluted $ 44,744 12,196 56,940 36,683 8,071 44,754 12,186 8,102 1,072 9,174 3,012 (171) 2,841 469 2,372 1.36 1.35 February 3, 2012 $ 49,906 12,165 62,071 39,689 8,571 48,260 13,811 8,524 856 9,380 4,431 (191) 4,240 748 3,492 1.90 1.88 January 28, 2011 $ 50,002 11,492 61,494 42,068 8,030 50,098 11,396 7,302 661 7,963 3,433 (83) 3,350 715 2,635 1.36 1.35 1,944 1,955

$ $ $

$ $ $

$ $ $

Cash dividends declared per common share $ 0.16 $ $ Weighted-average shares outstanding: Basic 1,745 1,838 Diluted 1,755 1,853 The accompanying notes are an integral part of these consolidated financial statements.

63

Table of Contents DELL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Fiscal Year Ended February 1, 2013 Net income Adjustment to consolidate variable interest entities Other comprehensive income, net of tax Foreign currency translation adjustments Available-for-sale investments Change in unrealized gains (losses) Reclassification adjustment for net (gains) losses included in net income Net change Cash Flow Hedges Change in unrealized gains (losses) Reclassification adjustment for net (gains) losses included in net income Net change Total other comprehensive income (loss), net of tax benefit (expense) of $(8), $(1) and $2, respectively Comprehensive income, net of tax $ $ 2,372 February 3, 2012 $ 3,492 January 28, 2011 $ 2,635 (1)

(33)

(74)

79

7 (13) (6)

42 (29) 13

(1) (1)

(18) 59 41

(119) 190 71

(254) 142 (112)

2 2,374 $

10 3,502 $

(34) 2,600

The accompanying notes are an integral part of these consolidated financial statements.

64 Table of Contents DELL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Fiscal Year Ended February 1, 2013 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by $ 2,372 February 3, 2012 $ 3,492 January 28, 2011 $ 2,635

operating activities: Depreciation and amortization Stock-based compensation expense Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies Deferred income taxes Provision for doubtful accounts including financing receivables Other Changes in assets and liabilities, net of effects from acquisitions: Accounts receivable Financing receivables Inventories Other assets Accounts payable Deferred revenue Accrued and other liabilities Change in cash from operating activities Cash flows from investing activities: Investments: Purchases Maturities and sales Capital expenditures Proceeds from sale of facilities, land, and other assets Purchase of financing receivables Collections on purchased financing receivables Acquisitions, net of cash received Change in cash from investing activities Cash flows from financing activities: Repurchases of common stock Cash dividends paid Issuance of common stock under employee plans Issuance (repayment) of commercial paper (maturity 90 days or less), net Proceeds from debt Repayments of debt Other Change in cash from financing activities Effect of exchange rate changes on cash and cash equivalents Change in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period $

1,144 347 18 (428) 258 19

936 362 (5) 19 234 21

970 332 (4) (45) 382 26

(150) (193) 48 (334) (74) 382 (126) 3,283

(53) (372) (52) (28) 327 701 (55) 5,527

(707) (709) (248) 516 (151) 307 665 3,969

(2,615) 4,354 (513) 135 167 (4,844) (3,316) (724) (278) 52 (331) 3,311 (3,248) 8 (1,210) (40) (1,283) 13,852 12,569 $

(4,656) 1,435 (675) 14 278 (2,562) (6,166) (2,717) 40 635 4,050 (1,435) 4 577 1 (61) 13,913 13,852 $

(1,360) 1,358 (444) 18 (430) 69 (376) (1,165) (800) 12 (176) 3,069 (1,630) 2 477 (3) 3,278 10,635 13,913 435 188

Income tax paid $ 283 $ 408 $ Interest paid $ 279 $ 267 $ The accompanying notes are an integral part of these consolidated financial statements.

65 Table of Contents DELL INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (in millions)
Common Stock and Capital in Excess of Par Value Issued Shares
(a)

Treasury Stock Accumulated Other Comprehensive Income/(Loss) Total Dell Shareholder's Equity NonControlling Interest

Amount

Shares

Amount

Retained Earnings

Total Equity

Balances at January 29, 2010 Net income Adjustment to consolidate variable interest entities Change in net unrealized gain or loss on investments, net of taxes Foreign currency translation adjustments Change in net unrealized gain or loss on derivative instruments, net of taxes Total comprehensive income Stock issuances under employee plans and other
(b)

3,351

$11,472

919 $(27,904)

$22,110 2,635 (1)

(37) (1) 79

5,641 2,635 (1) (1) 79

$ 5,641 2,635 (1) (1) 79

18 3,369

7 332 (14) 11,797

57 976

(800) (28,704)

24,744 3,492

(112) (71) 13 (74)

(112) 2,600 7 (800) 332 (14) 7,766 3,492 13 (74)

(112) 2,600 7 (800) 332 (14) 7,766 3,492 13 (74)

Repurchases of common stock Stock-based compensation related Net tax shortfall from employee stock plans Balances at January 28, 2011 Net income Change in net unrealized gain or loss on investments, net of taxes Foreign currency translation adjustments Change in net unrealized gain or loss on derivative instruments, net of taxes Total comprehensive income Stock issuances under employee plans and other
(b)

21 3,390

33 365 (8) 12,187

178 1,154

(2,741) (31,445)

28,236 2,372

71 (61) (6) (33)

71 3,502 33 (2,741) 365 (8) 8,917 2,372 (6) (33)

71 3,502 33 (2,741) 365 (8) 8,917 2,372 (6) (33)

Repurchases of common stock Stock-based compensation related Net tax shortfall from employee stock plans Balances at February 3, 2012 Net income Change in net unrealized gain or loss on investments, net of taxes Foreign currency translation adjustments

Change in net unrealized gain or loss on derivative instruments, net of taxes Total comprehensive income Stock issuances under employee plans and other
(b)

23 3,413

36 358 (27) $12,554

46

(700)

(278) $30,330 $

41 (59)

41 2,374 36 (700) (278) 358 (27) $ 10,680 $

21 21

41 2,374 36 (700) (278) 358 (27) 21 $ 10,701

Repurchases of common stock Cash dividends declared Stock-based compensation related Net tax shortfall from employee stock plans Noncontrolling interest assumed through acquisitions Balances at February 1, 2013
(a)

1,200 $(32,145)

Issued shares include 475 million shares of common stock that were issued to a wholly-owned subsidiary during Fiscal 2007. As these shares are held by a wholly-owned subsidiary, they are not included in outstanding shares in our Consolidated Financial Statements. (b) Stock issuance under employee plans is net of shares withheld for employee taxes.