Dell 1998 Annual Report Download - page 22

The Company believes that the most likely worst case scenarios would involve the
interruption of crucial suppliers as a result of infrastructure failures or
third party vendor failures. As a result, the Company is developing contingency
plans that will address each of the most likely worst case scenarios. Such
contingency plans are expected to be completed no later than September 30, 1999.
The Company believes that it is taking appropriate steps to assess and address
its Year 2000 issues and currently does not expect that its business will be
adversely affected by the Year 2000 issue in any material respect. Nevertheless,
achieving Year 2000 readiness is dependent on many factors, some of which are
not completely within the Company's control. Should either the Company's
internal systems and devices or the internal systems and devices of one or more
critical vendors fail
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to achieve Year 2000 readiness, the Company's business and its results of
operations could be adversely affected.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities." See Note 1 of Notes to Consolidated Financial
Statements included in "Item 8 -- Financial Statements and Supplementary Data."
ITEM 7A -- QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Response to this item is included in "Item 7 -- Management's Discussion and
Analysis of Financial Condition and Results of Operations -- Market Risk."
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ITEM 8 -- FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
PAGE
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Financial Statements:
Report of Independent Accountants......................... 29
Consolidated Statement of Financial Position at January
29, 1999 and
February 1, 1998....................................... 30
Consolidated Statement of Income for the three fiscal
years ended January 29, 1999........................... 31
Consolidated Statement of Cash Flows for the three fiscal
years ended January 29, 1999........................... 32
Consolidated Statement of Stockholders' Equity for the
three fiscal years ended January 29, 1999.............. 33
Notes to Consolidated Financial Statements................ 34
Financial Statement Schedule:
For the three fiscal years ended January 29, 1999
Schedule II -- Valuation and Qualifying Accounts....... 53
All other schedules are omitted because they are not applicable.
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders of
Dell Computer Corporation
In our opinion, the consolidated financial statements listed in the accompanying
index present fairly, in all material respects, the financial position of Dell
Computer Corporation and its subsidiaries at January 29, 1999 and February 1,
1998, and the results of their operations and their cash flows for each of the
three fiscal years in the period ended January 29, 1999, in conformity with
generally accepted accounting principles. In addition, in our opinion, the
financial statement schedule listed in the accompanying index, presents fairly,
in all material respects, the information required to be set forth therein when
read in conjunction with the consolidated financial statements. These financial
statements and financial statement schedule are the responsibility of the
Company's management; our responsibility is to express an opinion on these
financial statements and financial statement schedule based on our audits. We
conducted our audits of these statements in accordance with generally accepted
auditing standards, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and