Dell 2009 Annual Report Download - page 51

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Table of Contents
New Accounting Pronouncements
Variable Interest Entities and Transfers of Financial Assets and Extinguishments of Liabilities — We transfer certain customer financing
receivables to special purpose entities. In Fiscal 2011, the new FASB guidance on variable interest entities and transfers of financial
statements and extinguishment of liabilities will be effective for us. Under the prior guidance, special purpose entities were exempt from
variable interest entity accounting. Upon adoption of the new guidance in the first quarter of Fiscal 2011, we will apply variable interest
entity accounting to these special purpose entities and consolidate these special purpose entities in our Consolidated Financial Statements.
As of January 29, 2010, the unpaid principal balance of the securitized receivables and associated debt held in the unconsolidated special
purposes entities were $774 million and $624 million, respectively. Upon consolidation, the retained interest of $151 million will be
eliminated. The new FASB guidance will require us to perform an ongoing analysis to determine whether our variable interests give us a
controlling financial interest in the special purpose entities. See Note 4 of Notes to Consolidated Financial Statements included in
"Part II — Item 8 — Financial Statements and Supplementary Data" for additional information about our financing receivables.
ITEM 7A — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Response to this item is included in "Part II — Item 7 — Management's Discussion and Analysis of Financial Condition and Results of
Operations — Market Risk" and is incorporated herein by reference.
47