Dell 2002 Annual Report Download - page 43

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Table of Contents
Reclassifications — Certain prior year amounts have been reclassified to conform to the fiscal 2003 presentation.
NOTE 2 — Financial Instruments
Disclosures About Fair Values of Financial Instruments
The fair value of investments, long-term debt and related interest rate derivative instruments has been estimated based upon market quotes from brokers. 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
options pricing model. The estimates presented herein are not necessarily indicative of the amounts that the Company 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 financial
statements at cost, which approximates fair value because of the short-term maturity of these instruments.
Investments
The following table summarizes by major security type the fair market value and cost of the Company's investments. All investments with remaining
maturities in excess of one year are recorded as long-term investments in the accompanying Consolidated Statement of Financial Position.
January 31, 2003 February 1, 2002
Fair Fair
Market Unrealized Market Unrealized
Value Cost Gain (Loss) Value Cost Gain
(in millions)
Debt securities:
U.S. government and agencies $ 3,507 $ 3,474 $ 33 $ 1,663 $ 1,657 $ 6
U.S. corporate 1,739 1,705 34 2,393 2,375 18
International corporate 151 146 5 168 165 3
State and municipal governments 45 45 — 87 84 3
Total debt securities 5,442 5,370 72 4,311 4,281 30
Equity securities 231 232 (1) 335 332 3
Total investments $ 5,673 $ 5,602 $ 71 $ 4,646 $ 4,613 $ 33
Short-term $ 406 $ 402 $ 4 $ 273 $ 271 $ 2
Long-term 5,267 5,200 67 4,373 4,342 31
Total investments $ 5,673 $ 5,602 $ 71 $ 4,646 $ 4,613 $ 33
The following table summarizes the Company's recognized gains and losses on investments, including impairments of certain investments.
Fiscal Year Ended
January 31, February 1, February 2,
2003 2002 2001
(in millions)
Gains $ 86 $ 185 $ 473
Losses (19) (462) (166)
Net gains (losses) $ 67 $ (277) $ 307
40