Dell 2010 Annual Report Download - page 12

Table of Contents
Government Regulation and Sustainability
• Government Regulation
Our business is subject to regulation by various U.S. federal and state governmental agencies and other governmental agencies.
Such regulation includes the radio frequency emission regulatory activities of the U.S. Federal Communications Commission;
the anti-trust regulatory activities of the U.S. Federal Trade Commission, the U.S. Department of Justice, and the European
Union; the consumer protection laws and financial services regulations of the U.S. Federal Trade Commission and various state
governmental agencies; the export regulatory activities of the U.S. Department of Commerce and the U.S. Department of
Treasury; the import regulatory activities of U.S. Customs and Border Protection; the product safety regulatory activities of the
U.S. Consumer Product Safety Commission and the U.S. Department of Transportation; the investor protection and capital
markets regulatory activities of the U.S. Securities and Exchange Commission; and the environmental, employment and labor,
and other regulatory activities of a variety of governmental authorities in each of the countries in which we conduct business.
We were not assessed any material environmental fines, nor did we have any material environmental remediation or other
environmental costs, during Fiscal 2011.
• Sustainability
Environmental stewardship and social responsibility are both integral parts of how we manage our business, and complement
our focus on business efficiencies and customer satisfaction. We use open dialogue with our stockholders, customers, vendors,
and other stakeholders as part of our sustainability governance process where we take candid feedback and offer honest
discussions on the challenges we face globally. Our environmental initiatives take many forms, including maximizing product
energy efficiency, reducing and eliminating sensitive materials from our products, and providing responsible, convenient
computer recycling options for customers.
We are committed to reducing our greenhouse gas emissions. We have set business requirements for our suppliers to disclose
and reduce their greenhouse gas impacts. We were the first company in our industry to offer a free worldwide recycling
program for our consumers. We also provide consumers with no-charge recycling of any brand of computer or printer with the
purchase of a new Dell computer or printer. We have streamlined our transportation network to reduce transit times, minimize
air freight and reduce emissions. Our packaging is designed to minimize box size and to increase recycled content of materials
along with recyclability. When developing and designing products, we select materials guided by a precautionary approach in
which we seek to eliminate environmentally sensitive substances (where reasonable alternatives exist) from our products and
work towards developing reliable, environmentally sound, and commercially scalable solutions. We also have created a series
of tools that help customers assess their current IT operations and uncover ways to reduce both the costs of those operations and
their impact on the environment.
Product Backlog
We believe that product backlog is not a meaningful indicator of net revenue that can be expected for any period. Our business model
generally gives us flexibility to manage product backlog at any point in time by expediting shipping or prioritizing customer orders
toward products that have shorter lead times, thereby reducing product backlog and increasing current period revenue. Moreover, product
backlog at any point in time may not translate into net revenue in any subsequent period, as unfilled orders can generally be canceled at
any time by the customer.
Trademarks and Service Marks
Unless otherwise noted, trademarks appearing in this report are trademarks owned by us. We disclaim proprietary interest in the marks
and names of others. EMC is a registered trademark of EMC Corporation. Windows 7 is a registered trademark of Microsoft Corporation.
FICO is a registered trademark of Fair Isaac and Company. Net Promoter Score is a trademark of Satmetrix Systems, Inc., Bain &
Company, Inc., and Fred Reichheld.
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