Dell 2004 Annual Report Download - page 13

Table of Contents
• Loss of government contracts could have a material adverse effect on Dell's business. Government contracts are subject to future funding that may affect the
extension or termination of programs, and are subject to the right of the government to terminate for convenience or non-appropriation. In addition, if Dell
violates legal or regulatory requirements, the government could suspend or disbar Dell as a contractor. Dell's suspension or disbarment as a government
contractor would negatively affect Dell's net revenue and profitability.
• 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 regulated in various jurisdictions. In addition, Dell must comply with new regulations restricting the company's ability to include lead
and certain other substances in its products. If Dell does not comply with applicable rules and regulations in connection with the use and sale of such
substances, Dell could be subject to liability. Dell could also face substantial costs and liabilities in connection with product take-back legislation. Beginning
in August 2005, Dell will be subject to the European Union Waste Electrical and Electronic Equipment Directive as enacted by individual European Union
countries ("WEEE Legislation"), which makes producers of electrical goods, including computers and printers, responsible for collection, recycling,
treatment and disposal of recovered products. Dell does not expect that the impact of the WEEE Legislation and other similar legislation adopted in Japan
and California will have a material adverse effect on Dell.
• If DFS is unable to provide financing to Dell's customers, Dell would be forced to use 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. Should DFS experience an interruption in operations, Dell
would likely have to use alternative sources for financing arrangements with its customers. Dell is currently dependent upon DFS, a joint venture with CIT,
to provide financing for a significant number of customers who elect to finance Dell products, and DFS is dependent in part 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 fully fund customer financing
arrangements. Upon any such interruption in services, Dell would be forced to use alternative sources for financing for its customers, or self-finance these
activities. Although Dell has sufficient alternative sources for financing 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.
• Armed hostilities, terrorism, natural disasters, or public health issues could have a material adverse effect on Dell's business. Armed hostilities, terrorism,
natural disasters, or public health issues, whether in the U.S. or abroad, could cause damage or disruption to Dell, its suppliers or customers, or could create
political or economic instability, any of which could have a material adverse effect on Dell's business. Although it is impossible to predict the consequences
of any such events, such events could result in a decrease in demand for Dell's products, could make it difficult or impossible for Dell to deliver products or
for its suppliers to deliver components, and could create delay and inefficiencies in Dell's supply chain.
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.
Available Information
Dell maintains an Internet website at www.dell.com. Dell's reports filed with the Securities and Exchange Commission ("SEC") (including annual
reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, any amendments to these reports, and Section 16 filings)
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