Dell 1999 Annual Report Download - page 20

offerings. The Company is not aware of any material Year 2000 readiness issues associated with its hardware offerings. The Company
plans to continue to monitor the situation closely.
Although the Company attempted to ascertain the Year 2000 status of third party software and peripherals loaded on or distributed
with Company computer systems, it does not and cannot guarantee the Year 2000 status of any software or peripherals provided by
third parties.
Costs
The total costs of the Company's Year 2000 readiness program were not material to its financial condition or results of operation. All
costs were charged to expense as incurred, and did not include potential costs related to any customer issues or other claims or the cost
of internal software and hardware replaced in the normal course of business.
Risks/ Contingency Plans
Prior to the Year 2000 date change, the Company believed that the most likely worst-case scenarios would have involved the
interruption of crucial suppliers as a result of infrastructure failures or third party vendor failures. To date, no such interruptions or
failures have occurred. The Company currently believes that the likelihood of the occurrence of any such events due to the Year 2000
date change is low.
Recently Issued Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS")
No. 133, "Accounting for Derivative Instruments and Hedging Activities." In June 1999, The FASB issued SFAS No. 137, in which it
agreed to defer for one year the implementation date of SFAS No. 133. See Note 1 of Notes to Consolidated Financial Statements
included in "Item 8 — Financial Statements and Supplementary Data."
In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101, "Revenue Recognition in
Financial Statements." See Note 1 of Notes to Consolidated Financial Statements included in "Item 8 — Financial Statements and
Supplementary Data."
In March 2000, the Emerging Issues Task Force ("EITF") issued EITF Issue No. 00-7, Application of EITF Issue No. 96-13,
"Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock, to Equity
Derivative Transactions That Contain Certain Provisions That Require Cash Settlement If Certain Events Occur." See Note 1 of Notes
to Consolidated Financial Statements included in "Item 8 — Financial Statements and Supplementary Data."
ITEM 7A — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Response to this item is included in "Item 7 — Management's Discussion and Analysis of Financial Condition and Results of
Operations — Market Risk."
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ITEM 8 — FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Financial Statements:
Report of Independent Accountants 28
Consolidated Statement of Financial Position at January 28, 2000 and January 29, 1999 29
Consolidated Statement of Income for the three fiscal years ended January 28, 2000 30
Consolidated Statement of Cash Flows for the three fiscal years ended January 28, 2000 31
Consolidated Statement of Stockholders' Equity for the three fiscal years ended January 28, 2000 32
Notes to Consolidated Financial Statements 33
Financial Statement Schedule:
For the three fiscal years ended January 28, 2000
Schedule II — Valuation and Qualifying Accounts 55
All other schedules are omitted because they are not applicable.
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders of