Dell 2007 Annual Report Download - page 62

Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements — an amendment of
ARB No. 51 ("SFAS 160"). SFAS 160 requires that the noncontrolling interest in the equity of a subsidiary be accounted for and reported
as equity, provides revised guidance on the treatment of net income and losses attributable to the noncontrolling interest and changes in
ownership interests in a subsidiary and requires additional disclosures that identify and distinguish between the interests of the controlling
and noncontrolling owners. SFAS 160 also establishes disclosure requirements that clearly identify and distinguish between the interests
of the parent and the interests of the noncontrolling owners. SFAS 160 is effective for fiscal years beginning after December 15, 2008 and
is required to be adopted by Dell beginning in the first quarter of Fiscal 2010. Management does not expect SFAS 160 to have an impact
on Dell's results of operations, financial position, and cash flows.
NOTE 2 — FINANCIAL INSTRUMENTS
Disclosures About Fair Values of Financial Instruments
The fair value of investments and related interest rate derivative instruments has been estimated based upon quoted rates and pricing
models. The fair value of foreign currency forward contracts has been estimated using market quoted rates of foreign currencies at the
applicable balance sheet date. The estimated fair value of foreign currency purchased option contracts is based on market quoted rates at
the applicable balance sheet date and the Black-Scholes option pricing model. The estimates presented herein are not necessarily
indicative of the amounts that Dell could realize in a current market exchange. Changes in assumptions could significantly affect the
estimates.
Cash and cash equivalents, accounts receivable, accounts payable, and accrued and other liabilities are reflected in the accompanying
Consolidated Statements of Financial Position at cost, which approximates fair value because of the short-term maturity of these assets
and liabilities.
See Note 6 of Notes to Consolidated Financial Statements for a discussion on financing receivables and retained interest.
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