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Unformatted text preview: Cash Equivalents — All highly liquid investments, including credit card receivables due from banks, with original maturities of three
months or less at date of purchase, are reported at fair value and are considered to be cash equivalents. All other investments not considered to be
cash equivalents are separately categorized as investments.
Investments — Dell's investments are primarily in debt securities, which are classified as available-for-sale and are reported at fair value (based
primarily on quoted prices and market observable inputs) using the specific identification method. Unrealized gains and losses, net of taxes, are
reported as a component of stockholders' equity. Realized gains and losses on investments are included in interest and other, net. An impairment loss
will be recognized and will reduce an investment's carrying amount to its fair market value when a decline in the fair market value of an individual
security below its cost or carrying value is determined to be other than temporary.
Dell reviews its investment portfolio quarterly to determine if any investment is other than temporarily impaired. Dell determines an impairment is
other than temporary when there is intent to sell the security, it is more likely than not that the security will be required to be sold before recovery in
value or it is not expected to recover its entire amortized cost basis ("credit related loss"). However, if Dell does not expect to sell a debt security, it
still evaluates expected cash flows to be received and determines if a credit-related loss exists. In the event of a credit-related loss, only the amount
of impairment associated with the credit-related loss is recognized in earnings. Amounts relating to factors other than credit-related losses are
recorded in other comprehensive income. See Note 3 of Notes to the Consolidated Financial Statements for additional information.
Financing Receivables — Financing receivables consist of customer receivables, residual interest and retained interest in securitized receivables.
Customer receivables include revolving l...
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This document was uploaded on 02/22/2014 for the course ACCT 6330 at University of Texas at Dallas, Richardson.
- Spring '11