Dell 2008 Annual Report Download - page 47

Table of Contents
from the issuance of common stock under employee stock plans and other items. The year-over-year decrease in cash used for financing activities is
due primarily to the reduction of our share repurchase program during Fiscal 2009 and by proceeds from the issuance of long-term debt of
$1.5 billion. During Fiscal 2009, we repurchased approximately 134 million shares at an aggregate cost of $2.9 billion compared to approximately
179 million shares at an aggregate cost of $4.0 billion in Fiscal 2008. We also paid the principal on the Senior Notes of $200 million that matured in
April 2008 as discussed in Note 2 of Notes to Consolidated Financial Statements under "Part II — Item 8 — Financial Statements and
Supplementary Data."
In Fiscal 2008, the year-over-year increase in cash used in financing activities was due primarily to the repurchase of our common stock as the
temporary suspension of our share repurchase program ended in the fourth quarter of Fiscal 2008. In Fiscal 2008, we repurchased approximately
179 million shares at an aggregate cost of $4.0 billion, and during Fiscal 2007, we repurchased approximately 118 million shares at an aggregate
cost of $3.0 billion.
We also have a commercial paper program that allows us to issue short-term unsecured notes in an aggregate amount not to exceed $1.5 billion. We
use the proceeds for general corporate purposes. At January 30, 2009, there was $100 million outstanding under the commercial paper program and
no advances under the supporting credit facility. See Note 2 of Notes to Consolidated Financial Statements under "Part II — Item 8 — Financial
Statements and Supplementary Data" for further discussion on our long-term debt and commercial paper program.
Capital Commitments
Share Repurchase Program — We have a share repurchase program that authorizes us to purchase shares of common stock in order to increase
shareholder value and manage dilution resulting from shares issued under our equity compensation plans. However, we do not currently have a
policy that requires the repurchase of common stock to offset share-based compensation arrangements.
We typically repurchase shares of common stock through a systematic program of open market purchases. During Fiscal 2009, we repurchased
approximately 134 million shares of common stock for an aggregate cost of $2.9 billion. During Fiscal 2008 we repurchased approximately
179 million shares at an aggregate cost of $4.0 billion compared to 118 million shares at an aggregate cost of $3.0 billion in Fiscal 2007. For more
information regarding share repurchases, see "Part II — Item 5 — Market for Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities."
Capital Expenditures — During Fiscal 2009 and Fiscal 2008, we spent $440 million and $831 million, respectively, on property, plant, and
equipment primarily on our global expansion efforts and infrastructure investments in order to support future growth. The significant decrease in
capital expenditures from Fiscal 2008 is primarily due to the completion of facilities related projects during Fiscal 2008 and other cost reduction
actions. Product demand, product mix, and the increased use of contract manufacturers, as well as ongoing investments in operating and information
technology infrastructure, influence the level and prioritization of our capital expenditures. Capital expenditures for Fiscal 2010, related to our
continued expansion worldwide, are currently expected to reach approximately $400 million. These expenditures are expected to be funded from our
cash flows from operating activities.
Restricted Cash — Pursuant to an agreement between DFS and CIT, we are required to maintain escrow cash accounts that are held as recourse
reserves for credit losses, performance fee deposits related to our private label credit card, and deferred servicing revenue. Restricted cash in the
amount of $213 million and $294 million is included in other current assets at January 30, 2009, and February 1, 2008, respectively.
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