DELL COMPUTER CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(IN MILLIONS)
<TABLE>
<CAPTION>
PREFERRED STOCK
AND CAPITAL IN COMMON STOCK AND
EXCESS OF PAR CAPITAL IN EXCESS
VALUE OF PAR VALUE
---------------- ------------------ RETAINED
SHARES AMOUNT SHARES AMOUNT EARNINGS OTHER TOTAL
------ ------ ------- ------- -------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances at January 29, 1995.......... 1 $ 120 635 $ 242 $ 311 $(21) $ 652
Net income.......................... -- -- -- -- 272 -- 272
Stock issuance under employee plans,
including tax benefits........... -- -- 33 74 -- (17) 57
Preferred stock conversion.......... (1) (114) 80 114 -- -- --
Other............................... -- -- -- -- (13) 5 (8)
Balances at January 28, 1996.......... -- 6 748 430 570 (33) 973
Net income.......................... -- -- -- -- 518 -- 518
Stock issuance under employee plans,
including tax benefits........... -- -- 6 65 -- (18) 47
Purchase and retirement of 62
million shares................... -- -- (62) (22) (388) -- (410)
Purchase and reissuance of 19
million shares for employee plans
and preferred stock conversion... -- (6) -- -- (55) -- (61)
Reclassification of put options..... -- -- -- (279) -- -- (279)
Other............................... -- -- -- 1 2 15 18
Balances at February 2, 1997.......... -- -- 692 195 647 (36) 806
Net income.......................... -- -- -- -- 944 -- 944
Stock issuance under employee plans,
including tax benefits........... -- 21 274 -- (11) 263
Purchase and retirement of 69
million shares................... -- (69) (39) (984) -- (1,023)
Reclassification of put options..... -- -- -- 279 -- -- 279
Other............................... -- -- -- 38 -- (14) 24
Balances at February 1, 1998.......... -- $ -- 644 $ 747 $ 607 $(61) $ 1,293
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The accompanying notes are an integral part of these consolidated financial
statements.
NOTE 7 -- COMMON STOCK
Authorized Shares -- During fiscal 1998, the Company's stockholders approved an
increase in the number of authorized shares of common stock to one billion from
three hundred million at the end of fiscal 1997.
Stock Split -- On each of March 6, 1998 and July 25, 1997, the Company effected
a two-for-one common stock split by paying a 100% stock dividend to stockholders
of record as of February 27, 1998 and July 18, 1997, respectively. All share and
per share information has been retroactively restated in the Consolidated
Financial Statements to reflect these stock splits.
Stock Repurchase Program -- The Board of Directors has authorized the Company to
repurchase up to 250 million shares of its common stock in open market or
private transactions. During fiscal 1998 and fiscal 1997, the Company
repurchased 69 million and 81 million shares of its common stock, respectively,
for an aggregate cost of $1.0 billion and $503 million, respectively. The
Company utilizes equity instrument contracts to facilitate its repurchase of
common stock. At
February 1, 1998 and February 2, 1997, the Company held equity instrument
contracts that relate to the purchase of 50 million and 36 million shares of
common stock, respectively, at an average cost of $44 and $9 per share,
respectively. Additionally, at February 1, 1998 and February 2, 1997, the
Company has sold put obligations covering 55 million and 34 million shares,
respectively, at an average exercise price of $39 and $8, respectively. The
equity instruments are exercisable only at expiration, with the expiration dates
ranging from the first quarter of fiscal 1999 through the third quarter of
fiscal 2000.
At February 2, 1997, certain outstanding put obligations contained net cash
settlement or physical settlement terms thus resulting in a reclassification of
the maximum potential repurchase obligation of $279 million from stockholders'
equity to put warrants. The outstanding put obligations at February 1, 1998
permitted net-share settlement at the Company's option and, therefore, did not
result in a put warrant liability on the balance sheet. The equity instruments
did not have a material dilutive effect on earnings per common share for fiscal
1998 or fiscal 1997."
Thus, the Put/Call activity, as I posted before is not in the P&L and
is in the Equity Statement consistent with their stated accounting
policies as noted in my earlier post.
The above is taken from the afore mentioned Form 10-K.
Later, Dennis |
