Dell 2010 Annual Report Download - page 54

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Table of Contents
Risk Factors Affecting Our Business and Prospects
There are numerous significant risks that affect our business, operating results, financial condition, and prospects. Many of these risks are
beyond our control. These risks include those relating to:
• intense competition;
• our cost efficiency measures;
• our ability to manage effectively the change involved in implementing our strategic initiatives;
• our ability to manage solutions, product, and services transitions in an effective manner;
• adverse global economic conditions and instability in financial markets;
• our ability to generate substantial non-U.S. net revenue;
• weak economic conditions and additional regulation affecting our financial services activities;
• our ability to achieve favorable pricing from our vendors;
• our ability to deliver quality products and services;
• our reliance on vendors for products and components, including reliance on several single-sourced or limited-source suppliers;
• successful implementation of our acquisition strategy;
• our product, customer, and geographic sales mix, or seasonal sales trends;
• access to the capital markets by us and some of our customers;
• loss of government contracts;
• temporary suspension or debarment from contracting with U.S. federal, state, and local governments as a result of our settlement of
the SEC investigation;
• customer terminations, of or pricing changes in, services contracts, or our failure to perform as we anticipate at the time we enter into
services contracts;
• our ability to develop, obtain or protect licenses to intellectual property developed by us or by others on commercially reasonable and
competitive terms;
• information technology and manufacturing infrastructure disruptions or breaches of data security;
• our ability to hedge effectively our exposure to fluctuations in foreign currency exchange rates and interest rates;
• counterparty default;
• unfavorable results of legal proceedings;
• expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters;
• our ability to attract, retain, and motivate key personnel;
• our ability to maintain strong internal controls;
• our compliance with current and changing environmental and safety laws; and
• the effect of armed hostilities, terrorism, natural disasters, and public health issues.
For a discussion of these risk factors affecting our business, operating results, financial conditions, and prospects, see "Part I —
Item 1A — Risk Factors."
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