Dell 2009 Annual Report Download - page 43

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Table of Contents
See "Part I — Item 1A — Risk Factors" for further discussion of risks associated with our use of counterparties. The impact on our
Consolidated Financial Statements of any credit adjustments related to these counterparties has been immaterial.
Liquidity
Our cash balances are held in numerous locations throughout the world, including substantial amounts held outside of the U.S. The
majority of our non-U.S. domiciled cash and investments are denominated in the U.S. dollar. Most of the amounts held outside of the
U.S. could be repatriated to the U.S., but under current law would be subject to U.S. federal income taxes, less applicable foreign tax
credits. In some countries, repatriation of certain foreign balances is restricted by local laws. We have provided for the U.S. federal tax
liability on these amounts for financial statement purposes, except for foreign earnings that are considered permanently reinvested outside
of the U.S. We utilize a variety of tax planning and financing strategies with the objective of having our worldwide cash available in the
locations where it is needed.
We have an active working capital management team that monitors the efficiency of our balance sheet by evaluating liquidity under
various macroeconomic and competitive scenarios. These scenarios quantify risks to the financial statements and provide a basis for
actions necessary to ensure adequate liquidity. During Fiscal 2010, we continued to monitor and carefully prioritize capital expenditures
and other discretionary spending.
The following table summarizes our ending cash, cash equivalents, and investments balances for the respective periods:
Fiscal Year Ended
January 29, January 30,
2010 2009
(in millions)
Cash, cash equivalents, and investments:
Cash and cash equivalents $ 10,635 $ 8,352
Debt securities 1,042 1,106
Equity and other securities 112 88
Cash, cash equivalents, and investments $ 11,789 $ 9,546
We ended Fiscal 2010 and Fiscal 2009 with $11.8 billion and $9.5 billion in cash, cash equivalents, and investments, respectively. Cash
generated from operations is our primary source of liquidity and we believe that internally generated cash flows are sufficient to support
business operations. Over the past year, we have utilized external capital sources to supplement our domestic liquidity to fund a number
of strategic initiatives, including the acquisition of Perot Systems that was completed in the fourth quarter of Fiscal 2010. Outstanding as
of January 29, 2010, was $3.3 billion in principal on long-term notes, $496 million in commercial paper, and $164 million in structured
financing debt. We expect to continue to grow our business through strategic acquisitions, which will impact our future cash requirements
and liquidity. We will continue to utilize external capital sources, such as notes and other term debt, commercial paper, or structured
financing arrangements, to supplement our internally generated sources of liquidity as necessary. In November 2008, we filed a shelf
registration statement with the SEC for an unspecified amount of debt securities. The amount of debt securities issuable by us under this
registration statement from time to time will be established by our Board of Directors.
39