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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2002

Commission File Number: 333-69724

DELL COMPUTER CORPORATION DEFERRED COMPENSATION PLAN

(Full title of the Plan)

DELL COMPUTER CORPORATION
(Name of issuer of the securities held pursuant to the Plan)

One Dell Way
Round Rock, Texas 78682
(Address of issuer’s principal executive offices and address of the Plan)

 

TABLE OF CONTENTS

Report of Independent Accountants
Statements of Net Assets Available for Benefits
Statements of Changes in Net Assets Available for Benefits
Notes to Financial Statements
Schedule I — Plan Investments at December 31, 2002
Schedule II — Allocation of Assets and Liabilities to Investment Program at December 31, 2002
Schedule III — Allocation of Income and Changes in Plan Equity to Investment Program For the Year Ended December 31, 2002
SIGNATURES
EXHIBIT INDEX
EX-23.1 Consent of Independent Accountants

Table of Contents

REQUIRED INFORMATION

             
        Page(s)
       
1. Report of Independent Accountants     1  
2. Financial Statements:        
 
a.
Statements of Net Assets Available for Benefits at December 31, 2002 and 2001
    2  
 
b.
Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2002, 2001, and 2000
    3  
3. Notes to Financial Statements     4  
4. Financial Statement Schedules:     9  
 
a.
Schedule I — Plan Investments at December 31, 2002
    9  
 
b.
Schedule II — Allocation of Assets and Liabilities to Investment Program at December 31, 2002 and 2001
    10  
 
c.
Schedule III — Allocation of Income and Changes in Plan Equity to Investment Program for the Years Ended December 31, 2002, 2001, and 2000
    12  
5. Signatures     16  
6. Exhibit 23.1 — Consent of Independent Accountants        

 

Table of Contents

Report of Independent Accountants

To the Participants and Benefits Administration Committee
of the Dell Computer Corporation Deferred Compensation Plan

In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Dell Computer Corporation Deferred Compensation Plan (the “Plan”) at December 31, 2002 and 2001, and the changes in net assets available for benefits for each of the three years in the period ended December 31, 2002 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Plan Investments at December 31, 2002, Allocation of Assets and Liabilities to Investment Program at December 31, 2002 and 2001 and Allocation of Income and Changes in Plan Equity to Investment Program for each of the three years in the period ended December 31, 2002 are presented for the purpose of additional analysis and are not required as part of the basic financial statements. These supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Austin, Texas
March 26, 2003

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Dell Computer Corporation Deferred Compensation Plan
Statements of Net Assets Available for Benefits (in thousands)

                     
        December 31,
       
        2002   2001
       
 
ASSETS
                
Investments:
                
 
Dell Computer Corporation money market investments
   $ —     $ 301  
 
Dell Computer Corporation common stock
     —       2,886  
 
Registered investment funds
     30,574       26,926  
 
    
     
 
   
Total Investments
     30,574       30,113  
Contributions receivable
     5,575       2,497  
Interest receivable
     —       —  
 
    
     
 
 
Total Assets
     36,149       32,610  
 
    
     
 
LIABILITIES
                
Accrued administrative expenses
     57       17  
 
    
     
 
 
Total Liabilities
     57       17  
 
    
     
 
NET ASSETS AVAILABLE FOR BENEFITS
   $ 36,092     $ 32,593  
 
    
     
 

The accompanying notes are an integral part of these financial statements

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Dell Computer Corporation Deferred Compensation Plan
Statements of Changes in Net Assets Available for Benefits (in thousands)

                                 
            For the Year Ended December 31,
           
            2002   2001   2000
           
 
 
ADDITIONS:
                        
 
Additions to net assets attributed to:
                        
   
Investment income:
                        
     
Interest and dividends
   $ 608     $ 1,057     $ 3,483  
     
Realized net gain on sales of investments
     —       —       590  
     
Unrealized net appreciation of investments
     —       1,161       —  
 
    
     
     
 
       
Net Investment Income
     608       2,218       4,073  
 
    
     
     
 
   
Contributions:
                        
     
Participant contributions
     9,110       8,529       10,329  
     
Employer contributions
     169       264       309  
 
    
     
     
 
       
Total Contributions
     9,279       8,793       10,638  
 
    
     
     
 
       
Total Additions
     9,887       11,011       14,711  
 
    
     
     
 
DEDUCTIONS:
                        
 
Deductions to net assets attributed to:
                        
   
Withdrawals
     (3,369 )     (15,248 )     (519 )
   
Realized net loss on sales of investments
     (237 )     (360 )     —  
   
Unrealized net depreciation of investments
     (2,428 )     —       (9,752 )
   
Administrative expenses
     (354 )     (63 )     (132 )
 
    
     
     
 
       
Total Deductions
     (6,388 )     (15,671 )     (10,403 )
 
    
     
     
 
       
Net (decrease) increase
     3,499       (4,660 )     4,308  
NET ASSETS AVAILABLE FOR BENEFITS:
                        
       
Beginning of year
     32,593       37,253       32,945  
 
    
     
     
 
       
End of year
   $ 36,092     $ 32,593     $ 37,253  
 
    
     
     
 

The accompanying notes are an integral part of these financial statements

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Dell Computer Corporation Deferred Compensation Plan
Notes to Financial Statements

Note 1 — DESCRIPTION OF THE PLAN

      General — Dell Computer Corporation (the “Company” or “Plan Sponsor”) adopted the Dell Computer Corporation Deferred Compensation Plan as Amended and Restated effective January 1, 2001 (the “Plan”). The following brief description of the Plan provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
 
      The Plan is a non-qualified, deferred compensation plan. The Plan is open to employees at the Director, Vice President, President and CEO levels. Participation in the Plan is at the election of the employee. The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974.
 
      Employee Contributions — Contributions are made to the Plan by the Company on behalf of each eligible participant based upon the participant’s elected compensation deferral through payroll deductions. The deferrals are funded by the Company at the end of each payroll period. In 2002, 2001 and 2000, eligible participants were able to contribute 1% to 50%, 1% to 50% and 1% to 100%, respectively, of their eligible compensation plus 1% to 100%, of any annual bonus, in whole percentages. All contributions and account balances are subject to creditors of the Company in the event of the Company’s bankruptcy.
 
      Employer Contributions — The Company may credit a participant’s account with an amount, if any, which the Company in its sole discretion shall determine. Such credits may be made on behalf of some participants but not others, and such credits may vary in amount among individual participants. Employer contributions are made according to each participant’s fund elections. During 2002, 2001 and 2000, employer matching contributions were 3% of eligible deferred compensation for all participants, subject to legally imposed maximum employer match limits. Neither participant nor Company contributions are required to be invested in the Dell Computer Corporation Stock Fund.
 
      Participant Terminations — Matching contributions forfeited by unvested terminated participants may be used by the Company to offset future matching contributions. At December 31, 2002 and 2001, there were no forfeited non-vested account balances outstanding. Forfeitures used to reduce employer matching contributions during 2002, 2001 and 2000 were approximately $15,000, $155,000 and $7,000 respectively.
 
      Plan Termination — Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan. In the event of Plan termination, participants will become 100% vested in their accounts.
 
      Number of Participants — The number of participants in the Plan at December 31, 2002 and 2001, were 95 and 102 participants, respectively.
 
      Vesting — Participants are immediately vested in their contributions and earnings. A participant vests 20% in employer matching contributions after one year of service and 20% annually thereafter. If a participant is re-employed before a one-year break in service has occurred, the participant’s vesting will continue as if the break in service had not occurred.
 
      Administration — Plan assets are held in trust by Chase Manhattan Bank (the “Trustee”). The financial records of the plan are maintained by a third-party record keeper, Hewitt Services LLC (“Hewitt”). Hewitt replaced Automatic Data Processing, Inc. (“ADP”) as record keeper for the Plan in 2001. The conversion of the Plan’s assets from ADP to Hewitt became effective on January 4, 2001. Administrative expenses are primarily paid by the participants of the Plan and are allocated to participant accounts ratably based on fund balances.

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Dell Computer Corporation Deferred Compensation Plan
Notes to Financial Statements

      Grantor Trust — The Company established a Grantor (“Rabbi”) Trust in March 1997. The Trust shall be governed by and subject to the terms of a trust agreement entered into between the Company, as Grantor, and the Trustee.
 
      Participant Accounts — Each participant account is credited with the participant’s contribution and allocations of the Company’s contribution and Plan earnings offset by Plan administrative expenses. Each day, the Trustee calculates earnings and allocates gains and losses to each participant’s account. The benefit to which a participant is entitled is limited to the participant’s vested account balance.
 
      Investment Options — Participants may direct their account balance and future contributions to any combination of pre-approved funds. There were 9 pre-approved funds in 2002; 10 in 2001 and 8 in 2000. Participants can transfer the current balance of employee contributions among the investment options or change the direction of their future contributions daily.
 
      The following table sets forth information specific to each investment option under the Plan:
                     
        Number of
        Participants at
        December 31,
       
Investment Option   Description   2002   2001
 
 
 
Dodge & Cox Stock   Large-Cap Value     78       74  
PIMCO Total Return   Fixed Income     67       51  
Dodge & Cox Balanced   Equity and Fixed Income     80       64  
Primco Stable Value   Stable Value     79       74  
American Euro Pacific Growth   International Equity     57       58  
Invesco Small Company Growth   Small-Cap Growth     56       46  
Neuberger Berman Genesis   Small-Cap Value     67       52  
Janus Growth & Income   Large-Cap Growth     50       27  
Barclays S&P 500 Index   Equity Index     41       21  
Dell Computer Corporation Stock   Company Stock     -       39  

      During 2001, the Plan established the Primco Stable Value Fund (“Primco Fund”). The Primco Fund invests in synthetic investment contracts (“SICs”) and cash equivalents. SICs are contracts, referred to as “wrappers”, with banks or insurance companies that guarantee a certain interest rate and underlying value on a portfolio of assets held by the plan. Participant-directed transactions, such as withdrawals, are made at contract value rather than at the fair value of the underlying assets.
 
      Tax Status —All income, deductions and credits under the Plan belong to the Plan Sponsor, for income tax purposes and will be included on the Plan Sponsor’s income tax returns. The Plan Sponsor pays any federal, state and local taxes on the Plan, or any part thereof, and on the income therefrom. Participants are not taxed on their benefits until withdrawn from the Plan.

Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      Basis of Accounting — The financial statements of the Plan are prepared under the accrual method of accounting, in accordance with accounting principles generally accepted in the United States of America.

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Dell Computer Corporation Deferred Compensation Plan
Notes to Financial Statements

      Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the use of management’s estimates. These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at fiscal year end and the reported amounts of additions and deductions during the fiscal year. Actual results could differ from those estimates.
 
      Risks and Uncertainties — Financial instruments which potentially subject the Plan to concentrations of credit risk consist primarily of securities in which the Plan invests. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the near-term could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.
 
      Cash and Cash Equivalents — The Plan considers all liquid investments with original maturities of three months or less to be classified as cash equivalents. Cash equivalents are stated at cost, which approximates market value.
 
      Contributions Receivable — Contributions receivable represent the participants’ portion of the Company’s annual bonus payout to be contributed to the Plan subsequent to the Plan’s year-end, and amounts owed to the Plan at year-end that relate to timing differences for employer matching contributions pertaining to the last payroll period of the year. Contributions receivable related to the annual bonus payout is allocated to each fund based on fund balances.
 
      Investments — With the exception of the Primco Fund, all investments are recorded at acquisition cost on a trade-date basis, which includes brokerage commissions, and are revalued each business day based upon quoted market prices.
 
      As described in Note 1, the Primco Fund includes SICs. The SICs in the Primco Fund are fully benefit-responsive and are therefore recorded at contract value. Contract value represents contributions made under the contract plus accrued interest at the guaranteed rate less funds used to pay for plan distributions and expenses.
 
      The Plan presents, in the statement of changes in net assets available for benefits, the net appreciation or depreciation in the fair value of investments which consists of realized gains and losses and the unrealized appreciation or depreciation on those investments. Net unrealized appreciation or depreciation is determined based on the difference between average cost of the investments and the market value as of each valuation date of such investment. Average cost is determined based on the weighted average cost of all investments purchased less any dispositions during the plan year.
 
      The fair value of the SICs represents the combined fair value of the underlying assets as well as the fair value of the related wrapper contract. The wrapper contract is valued as the difference between the contract value of the SIC and the fair value of the underlying assets.
 
      Distributions — Plan distributions are recorded when paid.

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Dell Computer Corporation Deferred Compensation Plan
Notes to Financial Statements

Note 3 — INVESTMENTS:

      The following presents investments that represent 5% or more of the Plan’s net assets (in thousands):
                 
    December 31,
   
    2002   2001
   
 
Dodge & Cox Stock Fund
   $ 6,703     $ 5,956  
PIMCO Total Return Fund
     4,043       2,530  
Dodge & Cox Balanced Fund
     6,298       2,646  
Primco Stable Value Fund
     7,552       5,688  
American Euro Pacific Growth Fund
     5,245       5,264  
Neuberger Berman Genesis Fund
     3,363       2,740  
Dell Computer Corporation Stock Fund
     —       3,187  

      Registered investment fund costs at December 31, 2002 and 2001 were approximately $33,541,000 and $27,360,000 respectively. Dell Computer Corporation Stock Fund costs at December 31, 2001 were approximately $3,292,000. In 2002, the Plan discontinued the Dell Computer Corporation Stock Fund as an investment option for participants. In December 2002, the Dell Computer Corporation Stock fund was liquidated and approximately $2.1 million was transferred to the Dodge & Cox Balanced Fund.
 
      The assets underlying the SICs in the Primco Fund are comprised of cash equivalents and mutual funds with fair values of $5,831,000 and $5,084,000 at December 31, 2002 and 2001, respectively. The contract value of the SICs at December 31, 2002 and 2001 was $5,821,000 and $5,078,000, respectively. The Primco Fund held cash equivalents of $577,000 and $610,000 at December 31, 2002 and 2001, respectively. There was no valuation reserve against the Fund’s SICs at December 31, 2002 and 2001.
 
      The interest crediting rate on the SICs are reset quarterly based on the yield to maturity and expected cash flow over the life of the related supporting assets. The SICs have a minimum guarantee on all rate resets of not less than zero percent. At December 31, 2002, the interest crediting rates on the SICs ranged from 1.67% to 3.51% and were 2.2% at December 31, 2001.
 
      For the year ended December 31, 2002 and 2001, the aggregate average annual yield for the SICs in the Primco Fund was 1.77% and 3.24%, respectively. There are no restrictions on participant withdrawals from the Primco Fund. Certain withdrawals not deemed to be participant initiated and not in compliance with the contract’s provisions are subject to certain penalties.

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Dell Computer Corporation Deferred Compensation Plan
Notes to Financial Statements

     Note 4 — REALIZED NET GAINS OR LOSSES ON INVESTMENTS (in thousands):

      The schedule below illustrates net realized gains and losses on sales of investments by investment type:
                               
                          Realized
                          Net
                          Gains/
          Proceeds   Cost   (Losses)
         
 
 
For the year ended December 31, 2002
                        
 
Dell Computer Corporation Stock Fund
   $ 8,395     $ 8,461     $ (66 )
 
Registered investment funds
     8,327       8,498       (171 )
 
    
     
     
 
   
Total
   $ 16,722     $ 16,959     $ (237 )
 
    
     
     
 
For the year ended December 31, 2001
                        
 
Dell Computer Corporation Stock Fund
 $ 5,826     $ 6,458     $ (632 )
 
Registered investment funds
     32,695       32,423       272  
 
    
     
     
 
   
Total
   $ 38,521     $ 38,881     $ (360 )
 
    
     
     
 
For the year ended December 31, 2000
                        
 
Dell Computer Corporation Stock Fund
 $ 6,601     $ 6,152     $ 449  
 
Registered investment funds
   10,564       10,423       141  
 
    
     
     
 
   
Total
   $ 17,165     $ 16,575     $ 590  
 
    
     
     
 

Note 5 — UNREALIZED NET APPRECIATION OR DEPRECIATION OF INVESTMENTS (in thousands):

      The schedule below illustrates total unrealized net appreciation or depreciation of investments by investment type:
                                 
            For the period ended December 31,
           
            2002   2001   2000
           
 
 
Unrealized net appreciation (depreciation) at the beginning of the period:
                        
   
Dell Computer Corporation Stock Fund
   $ (105 )   $ (2,334 )   $ 3,878  
   
Registered investment funds
     (434 )     634       4,174  
   
 
    
     
     
 
       
Total
   $ (539 )   $ (1,700 )   $ 8,052  
   
 
    
     
     
 
Unrealized net appreciation (depreciation) for the period:
                        
   
Dell Computer Corporation Stock Fund
   $ 105     $ 2,229     $ (6,212 )
   
Registered investment funds
     (2,533 )     (1,068 )     (3,540 )
   
 
    
     
     
 
       
Total
   $ (2,428 )   $ 1,161     $ (9,752 )
   
 
    
     
     
 
Unrealized net appreciation (depreciation) at the end of the period:
                        
   
Dell Computer Corporation Stock Fund
 $ —     $ (105 )   $ (2,334 )
   
Registered investment funds
   (2,967 )     (434 )     634  
   
 
    
     
     
 
       
Total
 $ (2,967 )   $ (539 )   $ (1,700 )
   
 
    
     
     
 

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Dell Computer Corporation Deferred Compensation Plan
Schedule I — Plan Investments at December 31, 2002 (in thousands)

                 
    Shares   Market
    Held   Value
   
 
Dodge & Cox Stock Fund
     64,492     $ 5,679  
PIMCO Total Return Fund
     320,724       3,422  
Dodge & Cox Balanced Fund
     88,445       5,342  
American Euro Pacific Growth Fund
     193,744       4,450  
Invesco Small Company Growth Fund
     111,766       931  
Neuberger Berman Genesis Fund
     101,353       2,852  
Janus Growth & Income Fund
     26,917       628  
Barclays S&P 500 Index Fund
     8,176       872  
Dell Computer Corporation Stock Fund — Dell Stock
     —       —  
Dell Computer Corporation Stock Fund — Money Market
     —       —  
Primco Stable Value Fund:
                
UBS AG Synthetic Contract Wrapper #5097, 1.67%
     —       (5 )
Invesco Omicron Fund
     513,275       5,325  
UBS AG Synthetic Contract Wrapper #5129, 3.51%
     —       (5 )
Invesco Intermediate Government/Credit Fund
     46,628       506  
STIF Money Market Fund
     577,172       577  
 
            
 
 
             6,398  
Total
           $ 30,574  
 
            
 

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Dell Computer Corporation Deferred Compensation Plan
Schedule II — Allocation of Assets and Liabilities to Investment Program
At December 31, 2002 (in thousands of dollars)

                                                                                     
                                        Invesco                                    
        Dodge   PIMCO   Dodge           Small   Neuberger   Janus   Barclays                    
        &   Total   & Cox   American   Company   Berman   Growth &   S&P 500   Primco        
        Cox   Return   Balanced   Euro Pacific   Growth   Genesis   Income   Index   Stable        
        Stock Fund   Fund   Fund   Growth Fund   Fund   Fund   Fund   Fund   Value Fund   Total
 
      
 
 
 
 
 
 
 
 
 
ASSETS
                                                                                
Investments:
                                                                                
 
Registered investment funds
   $ 5,679     $ 3,422     $ 5,342     $ 4,450     $ 931     $ 2,852     $  628     $ 872     $ 6,398     $ 30,574  
 
        
     
     
     
     
     
     
     
     
     
 
   
Total Investments
     5,679       3,422       5,342       4,450       931       2,852       628       872       6,398       30,574  
Contributions receivable
     1,034       628       965       803       171       516       124       167       1,167       5,575  
Interest receivable
     —       —       —       —       —       —       —       —       —       —  
 
        
     
     
     
     
     
     
     
     
     
 
 
Total Assets
     6,713       4,050       6,307       5,253       1,102       3,368       752       1,039       7,565       36,149  
 
        
     
     
     
     
     
     
     
     
     
 
LIABILITIES
                                                                                
Accrued administrative expenses
     10       7       9       8       2       5       1       2       13       57  
 
        
     
     
     
     
     
     
     
     
     
 
 
Total Liabilities
     10       7       9       8       2       5       1       2       13       57  
 
        
     
     
     
     
     
     
     
     
     
 
NET ASSETS AVAILABLE FOR BENEFITS
   $ 6,703     $ 4,043     $ 6,298     $ 5,245     $ 1,100     $ 3,363     $ 751     $ 1,037     $ 7,552     $ 36,092  
 
        
     
     
     
     
     
     
     
     
     
 

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Dell Computer Corporation Deferred Compensation Plan
Schedule II – Allocation of Assets and Liabilities to Investment Program
At December 31, 2001 (in thousands of dollars)

                                                                                           
                                      Invesco                                                
      Dodge   PIMCO   Dodge   American   Small   Neuberger   Janus   Barclays   Dell   Primco        
      & Cox   Total   & Cox   Euro Pacific   Company   Berman   Growth &   S&P 500   Computer   Stable        
      Stock   Return   Balanced   Growth   Growth   Genesis   Income   Index   Corporation   Value        
      Fund   Fund   Fund   Fund   Fund   Fund   Fund   Fund   Stock Fund   Fund   Total
     
 
 
 
 
 
 
 
 
 
 
ASSETS
                                                                                       
Investments:
                                                                                        
 
Dell Computer Corporation money market investments
   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 301     $ —     $ 301  
  Dell Computer Corporation common stock
     —       —       —       —       —       —       —       —       2,886       —       2,886  
  Registered investment funds
     5,956       2,530       2,646       5,264       1,119       2,740       407       576       —       5,688       26,926  
 
 
    
     
     
     
     
     
     
     
     
     
     
 
    Total Investments
     5,956       2,530       2,646       5,264       1,119       2,740       407       576       3,187       5,688       30,113  
Contributions receivable
     494       212       224       433       93       225       33       50       261       472       2,497  
 
 
    
     
     
     
     
     
     
     
     
     
     
 
  Total Assets
     6,450       2,742       2,870       5,697       1,212       2,965       440       626       3,448       6,160       32,610  
 
 
    
     
     
     
     
     
     
     
     
     
     
 
LIABILITIES
                                                                                       
Accrued administrative expenses
     3       2       2       2       1       1       —       —       2       4       17  
 
 
    
     
     
     
     
     
     
     
     
     
     
 
  Total Liabilities
     3       2       2       2       1       1       —       —       2       4       17  
 
 
    
     
     
     
     
     
     
     
     
     
     
 
NET ASSETS AVAILABLE FOR BENEFITS
   $ 6,447     $ 2,740     $ 2,868     $ 5,695     $ 1,211     $ 2,964     $ 440     $ 626     $ 3,446     $ 6,156     $ 32,593  
       
     
     
     
     
     
     
     
     
     
     
 

11

Table of Contents

Dell Computer Corporation Deferred Compensation Plan
Schedule III — Allocation of Income and Changes in Plan Equity to Investment Program
For the Year Ended December 31, 2002 (in thousands of dollars)

                                                                                                 
            Dodge                   American   Invesco                                                
            &   PIMCO   Dodge   Euro   Sm                           Dell   Primco        
            Cox   Total   & Cox   Pacific   Co   Berman   Growth &   S&P 500   Computer   Stable        
            Stock   Return   Balanced   Growth   Growth   Genesis   Income   Index   Corporation   Value        
            Fund   Fund   Fund   Fund   Fund   Fund   Fund   Fund   Stock Fund   Fund   Total
           
 
 
 
 
 
 
 
 
 
 
ADDITIONS:
                                                                                        
Additions to net assets attributed to:
                                                                                        
 
Investment income:
                                                                                        
   
Interest and dividends
   $ 119     $ 238     $ 174     $ 46     $ —     $ 10     $ 5     $ 12     $ 4     $ —     $ 608  
   
 
    
     
     
     
     
     
     
     
     
     
     
 
     
Net Investment Income
     119       238       174       46       —       10       5       12       4       —       608  
Contributions:
                                                                                        
   
Participant contributions
     1,701       1,265       1,691       711       260       752       392       430       62       1,846       9,110  
   
Employer contributions
     20       38       22       4       13       23       9       6       9       25       169  
   
 
    
     
     
     
     
     
     
     
     
     
     
 
     
Total Contributions
     1,721       1,303       1,713       715       273       775       401       436       71       1,871       9,279  
     
Total Additions
     1,840       1,541       1,887       761       273       785       406       448       75       1,871       9,887  
   
 
    
     
     
     
     
     
     
     
     
     
     
 
DEDUCTIONS:
                                                                                        
Deductions to net assets attributed to:                                                                                        
   
Withdrawals
     (519 )     (445 )     (316 )     (345 )     (66 )     (632 )     (39 )     (27 )     (326 )     (654 )     (3,369 )
   
Unrealized appreciation (depreciation) of investments
     (839 )     34       (286 )     (648 )     (323 )     (203 )     (129 )     (189 )     105       50       (2,428 )
   
Realized gains (losses) on sale of investments
     6       22       (19 )     (121 )     (75 )     35       (28 )     (32 )     (66 )     41       (237 )
   
Administrative expenses
     (62 )     (38 )     (37 )     (51 )     (11 )     (31 )     (6 )     (10 )     (31 )     (77 )     (354 )
   
 
    
     
     
     
     
     
     
     
     
     
     
 
     
Total Deductions
     (1,414 )     (427 )     (658 )     (1,165 )     (475 )     (831 )     (202 )     (258 )     (318 )     (640 )     (6,388 )
   
Net increase in assets prior to interfund transfers
     426       1,114       1,229       (404 )     (202 )     (46 )     204       190       (243 )     1,231       3,499  
   
Interfund transfers
     (170 )     189       2,201       (46 )     91       445       107       221       (3,203 )     165       —  
   
 
    
     
     
     
     
     
     
     
     
     
     
 
   
Net Increase
     256       1,303       3,430       (450 )     (111 )     399       311       411       (3,446 )     1,396       3,499  
NET ASSETS AVAILABLE FOR BENEFITS:
                                                                                        
   
Beginning of year
     6,447       2,740       2,868       5,695       1,211       2,964       440       626       3,446       6,156       32,593  
   
 
    
     
     
     
     
     
     
     
     
     
     
 
   
End of year
   $ 6,703     $ 4,043     $ 6,298     $ 5,245     $ 1,100     $ 3,363     $ 751     $ 1,037     $ —     $ 7,552     $ 36,092  
   
 
    
     
     
     
     
     
     
     
     
     
     
 

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Table of Contents

Dell Computer Corporation Deferred Compensation Plan
Schedule III — Allocation of Income and Changes in Plan Equity to Investment
Program For the Year Ended December 31, 2001 (in thousands of dollars)

                                                                                                                 
                                            American           Invesco                                                
            Dodge   PIMCO   Dodge   STIF   Euro           Small   Neuberger   Janus   Barclays   Dell   Primco        
            & Cox   Total   & Cox   Money   Pacific   PBHG   Company   Berman   Growth &   S&P 500   Computer   Stable        
            Stock   Return   Balanced   Market   Growth   Growth   Growth   Genesis   Income   Index   Corporation   Value        
            Fund   Fund   Fund   Fund   Fund   Fund   Fund   Fund   Fund   Fund   Stock Fund   Fund   Total
           
 
 
 
 
 
 
 
 
 
 
 
 
ADDITIONS:
                                                                                                        
 
Additions to net assets attributed to:
                                                                                                        
   
Investment income:
                                                                                                        
     
Interest and dividends
   $ 305     $ 232     $ 159     $ —     $ 125     $ —     $ —     $ 73     $ 2     $ 37     $ 10     $ 114     $ 1,057  
     
Unrealized appreciation (depreciation) of investments
     53       (23 )     103       —       (777 )     —       (176 )     (231 )     (20 )     (63 )     2,229       66       1,161  
     
 
    
     
     
     
     
     
     
     
     
     
     
     
     
 
       
Net Investment Income
     358       209       262       —       (652 )     —       (176 )     (158 )     (18 )     (26 )     2,239       180       2,218  
 
Contributions:
                                                                                                        
     
Participant contributions
     1,169       877       1,189       —       993       —       326       877       133       209       609       2,147       8,529  
     
Employer contributions
     22       47       (17 )     —       48       —       14       29       20       10       19       72       264  
     
 
    
     
     
     
     
     
     
     
     
     
     
     
     
 
       
Total Contributions
     1,191       924       1,172       —       1,041       —       340       906       153       219       628       2,219       8,793  
       
Total Additions
     1,549       1,133       1,434       —       389       —       164       748       135       193       2,867       2,399       11,011  
     
 
    
     
     
     
     
     
     
     
     
     
     
     
     
 
DEDUCTIONS:
                                                                                                        
 
Deductions to net assets attributed to:
                                                                                                        
 
Withdrawals
     (4,073 )     (1,303 )     (1,449 )     —       (2,259 )     —       (367 )     (637 )     (2 )     (6 )     (1,410 )     (3,742 )     (15,248 )
 
Realized gains (losses) on sale of investments
     245       63       (11 )     —       (346 )     —       (112 )     425       (9 )     (6 )     (632 )     23       (360 )
 
Administrative expenses
     10       (18 )     (8 )     —       18       —       (3 )     (8 )     1       (2 )     (19 )     (34 )     (63 )
     
 
    
     
     
     
     
     
     
     
     
     
     
     
     
 
   
Total Deductions
     (3,818 )     (1,258 )     (1,468 )     —       (2,587 )     —       (482 )     (220 )     (10 )     (14 )     (2,061 )     (3,753 )     (15,671 )
 
Net increase (decrease) in net assets prior to interfund transfers
     (2,269 )     (125 )     (34 )     —       (2,198 )     —       (318 )     528       125       179       806       (1,354 )     (4,660 )
 
Interfund transfers
     (335 )     127       (205 )     (4,999 )     (1,362 )     (1,678 )     1,529       229       315       447       (1,578 )     7,510       —  
     
 
    
     
     
     
     
     
     
     
     
     
     
     
     
 
 
Net Increase (decrease)
     (2,604 )     2       (239 )     (4,999 )     (3,560 )     (1,678 )     1,211       757       440       626       (772 )     6,156       (4,660 )
NET ASSETS AVAILABLE FOR BENEFITS:
                                                                                                        
 
Beginning of year
     9,051       2,738       3,107       4,999       9,255       1,678       —       2,207       —       —       4,218       —       37,253  
     
 
    
     
     
     
     
     
     
     
     
     
     
     
     
 
 
End of year
   $ 6,447     $ 2,740     $ 2,868       —     $ 5,695     $ —     $ 1,211     $ 2,964     $ 440     $ 626     $ 3,446     $ 6,156     $ 32,593  
     
 
    
     
     
     
     
     
     
     
     
     
     
     
     
 

13

Table of Contents

Dell Computer Corporation Deferred Compensation Plan
Schedule III — Allocation of Income and Changes in Plan Equity to Investment
Program For the Year Ended December 31, 2000 (in thousands of dollars)

                                                                                                 
            Dodge                           American                                                
            &   PIMCO   Dodge   STIF   Euro           Neuberger   Dell                        
            Cox   Total   & Cox   Money   Pacific   PBHG   Berman   Computer                        
            Stock   Return   Balanced   Market   Growth   Growth   Genesis   Corporation                        
            Fund   Fund   Fund   Fund   Fund   Fund   Fund   Fund   Total                
           
 
 
 
 
 
 
 
 
               
ADDITIONS:
                                                                                
 
Additions to net assets attributed to:
                                                                                
   
Investment income:
                                                                                
     
Interest and dividends
   $ 1,366     $ 125     $ 444     $ 227     $ 928     $ 264     $ 109     $ 20     $ 3,483          
     
Realized gains (losses) on investments
     60       (1 )     (12 )     —       172       (96 )     18       449       590          
 
    
     
     
     
     
     
     
     
     
         
       
Net Investment Income
     1,426       124       432       227       1,100       168       127       469       4,073          
Contributions:
                                                                                
   
Participant contributions
     2,044       747       736       2,692       1,592       395       753       1,370       10,329          
   
Employer contributions
     64       26       22       88       74       9       28       (2 )     309          
 
    
     
     
     
     
     
     
     
     
         
       
Total Contributions
     2,108       773       758       2,780       1,666       404       781       1,368       10,638          
       
Total Additions
     3,534       897       1,190       3,007       2,766       572       908       1,837       14,711          
 
    
     
     
     
     
     
     
     
     
         
DEDUCTIONS:
                                                                                
 
Deductions to net assets attributed to:
   
Withdrawals
     (163 )     (3 )     (58 )     (128 )     (94 )     (35 )     (6 )     (32 )     (519 )        
   
Unrealized appreciation ( depreciation) of investments
     (303 )     106       (78 )     —       (2,863 )     (653 )     251       (6,212 )     (9,752 )        
   
Administrative expenses
     (39 )     (6 )     (10 )     (9 )     (35 )     (7 )     (6 )     (20 )     (132 )        
 
    
     
     
     
     
     
     
     
     
         
       
Total Deductions
     (505 )     97       (146 )     (137 )     (2,992 )     (695 )     239       (6,264 )     (10,403 )        
   
Net increase in assets prior to interfund transfers
     3,029       994       1,044       2,870       (226 )     (123 )     1,147       (4,427 )     4,308          
   
Interfund transfers
     (376 )     435       (111 )     (948 )     (116 )     133       312       671       —          
 
    
     
     
     
     
     
     
     
     
         
   
Net Increase (Decrease)
     2,653       1,429       933       1,922       (342 )     10       1,459       (3,756 )     4,308          
NET ASSETS AVAILABLE FOR BENEFITS:
                                                                                
   
Beginning of year
     6,398       1,309       2,174       3,077       9,597       1,668       748       7,974       32,945          
 
    
     
     
     
     
     
     
     
     
         
   
End of year
   $ 9,051     $ 2,738     $ 3,107     $ 4,999     $ 9,255     $ 1,678     $ 2,207     $ 4,218     $ 37,253          
 
    
     
     
     
     
     
     
     
     
         

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

         
        DELL COMPUTER CORPORATION DEFERRED COMPENSATION PLAN
 
        By: Benefits Administration Committee of the
       Dell Computer Corporation Deferred
       Compensation Plan
 
Date: March 31, 2003             By: /s/    Thomas B. Green                 
            Thomas B. Green
            Chairman of the Benefits
            Administration Committee

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EXHIBIT INDEX

     
EXHIBIT    
NUMBER   DESCRIPTION
 
23.1   Consent of Independent Accountants