Dell 1998 Annual Report Download - page 25

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DELL COMPUTER CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(IN MILLIONS)
COMMON STOCK AND
CAPITAL IN EXCESS
OF PAR VALUE
------------------ RETAINED
SHARES AMOUNT EARNINGS OTHER TOTAL
------- ------- -------- ----- -------
Balances at January 28, 1996................ 2,990 $ 430 $ 570 $(27) $ 973
Net income................................ -- -- 518 -- 518
Stock issuance under employee plans,
including tax benefits................. 25 65 -- (18) 47
Purchase and retirement of 246 million
shares................................. (246) (22) (388) -- (410)
Purchase and reissuance of 76 million
shares for employee plans and preferred
stock conversion....................... -- -- (55) (6) (61)
Reclassification of put options........... -- (279) -- -- (279)
Other..................................... -- 1 2 15 18
----- ------ ------- ---- -------
Balances at February 2, 1997................ 2,769 195 647 (36) 806
Net income................................ -- -- 944 -- 944
Stock issuance under employee plans,
including tax benefits................. 84 274 -- (11) 263
Purchase and retirement of 278 million
shares................................. (278) (39) (984) -- (1,023)
Reclassification of put options........... -- 279 -- -- 279
Other..................................... -- 38 -- (14) 24
----- ------ ------- ---- -------
Balances at February 1, 1998................ 2,575 747 607 (61) 1,293
Net income................................ -- -- 1,460 -- 1,460
Stock issuance under employee plans,
including tax benefits................. 117 1,092 -- (7) 1,085
Purchase and retirement of 149 million
shares................................. (149) (60) (1,458) -- (1,518)
Other..................................... -- 2 (3) 2 1
----- ------ ------- ---- -------
Balances at January 29, 1999................ 2,543 $1,781 $ 606 $(66) $ 2,321
===== ====== ======= ==== =======
The accompanying notes are an integral part of these consolidated financial
statements.
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DELL COMPUTER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 -- DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business -- Dell Computer Corporation, a Delaware corporation
(including its consolidated subsidiaries, the "Company") designs, develops,
manufactures, markets, services and supports a wide range of computer systems,
including desktop computer systems, notebook computers and enterprise systems
(includes servers, workstations and storage products), and also markets
software, peripherals and service and support programs. The Company is managed
on a geographic basis with those geographic segments being the Americas, Europe
and Asia-Pacific and Japan regions. The Company markets and sells its computer
products and services under the Dell(R) brand name directly to its various
customer groups. These customer groups include large corporate, government,
medical and education accounts, as well as small-to-medium businesses and
individuals. The Company conducts operations worldwide through wholly owned
subsidiaries; such operations are primarily concentrated in the North America,
Europe and Asia-Pacific and Japan regions.
Fiscal Year -- During fiscal year 1999, the Company changed its fiscal year from
the 52 or 53 week period ending on the Sunday nearest January 31 to the Friday
nearest January 31. The change in fiscal year had no material effect on the
Company's consolidated financial statements.
Principles of Consolidation -- The accompanying consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles and include the accounts of the Company. All significant intercompany
transactions and balances have been eliminated.
Use of Estimates -- The preparation of financial statements in accordance with
generally accepted accounting principles requires the use of management's