To: PAL who wrote (136986 ) 7/19/1999 8:26:00 PM From: jbn3 Read Replies (2) | Respond to
Re DELL repurchase of shares.During fiscal 1998, the Company repurchased 69 million shares of its common stock for an aggregate cost of $1.0 billion. The Company is currently authorized to repurchase up to 100 million additional shares of its common stock and anticipates that repurchases under this program will constitute a significant use of future cash resources. At February 1, 1998, the Company held equity instrument contracts that relate to the purchase of 50 million additional shares of its common stock for an average cost of $44 per share exercisable at various time in the first quarter of fiscal 1999 through the third quarter of fiscal 2000. Page 31, 1998 Annual ReportDuring fiscal 1998 and fiscal 1997, the Company repurchased 69 million and 81 million shares of its comon stock, respectively for an aggregate cost of $1.0 billion and $503 million, respectively. The Company uses equity instrument contracts to facilitate its repurchsae 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. Page 42, 1998 Annual Report The Board of Directors has authorized the Company to repurchase up to one billion shares of its common stock in open market or private transactions. During fiscal years 1999 and 1998, the Company repurchased 149 million and 278 million shares of its common stock, respectively, for an aggregate cost of $1.5 billion and $1.0 billion, respectively. The Company utilizes equity instrument contracts to facilitate its repurchase of common stock. At January 29, 1999 and February 1, 1998, the Company held equity insturment contracts that relate to the purchase of 49 million and 200 million shares of common stock, respectively at an average cost of $14 and $11 per share, respectively. Additionally, at January 29, 1999 and kFebruary 1, 1998, the Company had outstanding put obligations covering 33 million and 218 million shares, respectively, at an average exercise price of $11 and $10, respectively. The equity instruments are exercisable only at date of expiration, with the expiration dates ranging from the first quarter of fiscal year 2000 through the fourth quarter of fiscal year 2000. The outstanding put obligations at January 29, 1999 and February 1, 1998 permitted net-share settlement at the Company's option and, therefore, did not result in a put obligation liability on the accompanying consolidated statement of financial position. The equity instruments did not have a material effect on diluted earnings per common share for fiscal years 1999 and 1998. Page 40, Form 10-K For the Fiscal Year Ended January 29, 1999.
