Dell 2002 Annual Report Download - page 12

Table of Contents
considerations. 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 could affect operating results adversely.
• Dell's results may be affected if it does not effectively hedge its exposure to fluctuations in foreign currency exchange rates. Dell utilizes derivative
instruments to hedge its exposure to fluctuations in foreign currency exchange rates and interest rates. Some of these instruments and contracts may involve
elements of market and credit risk in excess of the amounts recognized in the Consolidated Financial Statements. For additional information about risk on
financial instruments, see "Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations — Market Risk." Further,
Dell may experience a decrease in revenue from its international operations if it is does not effectively hedge its exposure to currency fluctuations.
• Dell's continued business success may be largely dependent on its ability to obtain licenses to intellectual property developed by others on commercially
reasonable and competitive terms. If Dell or its suppliers are unable to obtain desirable technology licenses, Dell could be prohibited from marketing
products, could be forced to market products without desirable features or could incur substantial costs to redesign its products, defend legal actions or pay
damages.
• Dell cannot provide any assurance that current environmental laws, or any laws enacted in the future, will not have a material adverse effect on Dell. Dell's
operations are subject to environmental regulation in each of the jurisdictions in which Dell conducts business. Some of Dell's manufacturing operations use
substances that are highly regulated in various jurisdictions. If Dell does not comply with applicable rules and regulations in connection with the use of such
substances, Dell could be subject to significant liability.
• If DFS is unable to provide financing to Dell's customers, Dell would be forced to find alternative sources for financing for its customers or self-finance
these activities and, as a result, could experience a decline in its cash flow from operations. Dell is dependent upon DFS to provide financing for a
significant number of customers who elect to finance Dell products, and DFS is highly dependent upon CIT to access the capital markets to provide funding
for these transactions. If CIT is unable to access the capital markets, DFS may not be able to fund customer financing arrangements. Upon any such
interruption in services, Dell would be forced to find alternative sources for financing for its customers or self-finance these activities. Although Dell
believes that it can find alternative sources for financing for these activities, Dell could nonetheless experience a decline in its cash flow from operations if it
is unable to do so in a timely manner.
Trademarks and Service Marks
Unless otherwise noted, trademarks appearing in this Report are trademarks of Dell. Dell disclaims proprietary interest in the marks and names of others.
EMC is a registered trademark of EMC Corporation.
Website Access to SEC Reports
Dell maintains an Internet website at www.dell.com. Dell's periodic SEC reports (including annual reports on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K) are accessible through the Dell website, free of charge, as soon as reasonably practicable after these reports are filed
electronically with the SEC. To access these reports, go to Dell's website at www.dell.cominvestor.
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