Dell 2008 Annual Report Download - page 88
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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During Fiscal 2009 and Fiscal 2008, Dell recorded additions to intangible assets of $64 million and $762 million, respectively. Amortization
expense related to finite-lived intangible assets was approximately $103 million and $27 million in Fiscal 2009 and in Fiscal 2008. During the year
ended January 30, 2009, Dell did not record any impairment charges as a result of its analysis of its intangible assets.
Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of January 30, 2009, over the next five fiscal years and
thereafter is as follows:
Fiscal Years (in millions)
2010 $ 159
2011 144
2012 124
2013 100
2014 69
Thereafter 103
Total $ 699
NOTE 9 —WARRANTY LIABILITY AND RELATED DEFERRED SERVICE REVENUE
Revenue from extended warranty and service contracts, for which Dell is obligated to perform, is recorded as deferred revenue and subsequently
recognized over the term of the contract or when the service is completed. Dell records warranty liabilities at the time of sale for the estimated costs
that may be incurred under its standard warranty. Changes in Dell's deferred revenue for extended warranties, and warranty liability for standard
warranties which are included in other current and non-current liabilities on Dell's Consolidated Statements of Financial Position, are presented in
the following tables:
Fiscal Year Ended
January 30, February 1, February 2,
2009 2008 2007
(in millions)
Deferred service revenue:
Deferred service revenue at beginning of year $ 5,260 $ 4,221 $ 3,707
Revenue deferred for new extended warranty and service contracts sold(b) 3,545 3,806 3,188
Revenue recognized(c) (3,156) (2,767) (2,674)
Deferred service revenue at end of year $ 5,649 $ 5,260 $ 4,221
Current portion $ 2,649 $ 2,486 $ 2,032
Non-current portion 3,000 2,774 2,189
Deferred service revenue at end of year $ 5,649 $ 5,260 $ 4,221
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