Dell 2006 Annual Report Download - page 81

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
than as a reduction of the estimated settlement liability; (iii) correcting an error in the calculation and recording of the tax
benefit of employee stock options which had an offsetting impact on accrued and other liabilities and stockholders equity;
(iv) adjusting the fair value of long-term debt, where the interest rate is hedged with interest rate swap agreements; and
(v) adjusting deferred revenue to record professional and deployment services impacting accounts receivable and accrued
and other liabilities. These balance sheet corrections in classifications are included in the adjustments column above.
Statement of Cash Flows
The following table presents the major subtotals for Dell's Consolidated Statement of Cash Flows and the related impact of
the restatement adjustments discussed above for Fiscal 2006 and 2005:
Fiscal Year Ended
February 3, 2006 January 28, 2005
As As As As
Reported Restated Reported Restated
(in millions)
Net cash provided by (used in):
Net income $ 3,572 $ 3,602 $ 3,043 $ 3,018
Non-cash adjustments 912 789 59 643
Changes in working capital (67) (53) 1,755 1,772
Changes in noncurrent assets and liabilities 422 413 453 388
Operating activities 4,839 4,751 5,310 5,821
Investing activities 3,878 4,149 (2,317) (1,678)
Financing activities (6,226) (6,252) (3,128) (3,129)
Effect of exchange rate changes on cash and cash equivalents(a) (196) (73) 565 46
Net increase in cash and cash equivalents 2,295 2,575 430 1,060
Cash and cash equivalents at beginning of year 4,747 4,479 4,317 3,419
Cash and cash equivalents at end of year $ 7,042 $ 7,054 $ 4,747 $ 4,479
(a) The cash flows have been revised to reflect a closer approximation of the weighted-average exchange rates during the reporting periods. For
most periods, this revision reduced the previously reported effect of exchange rate changes on cash and cash equivalents with an offsetting
change in effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies and changes in operating
working capital included in cash flows from operating activities.
78