Dell 2008 Annual Report Download - page 48

Table of Contents
Contractual Cash Obligations
The following table summarizes our contractual cash obligations at January 30, 2009:
Payments Due by Period
Fiscal Fiscal 2011- Fiscal 2013-
Total 2010 2012 2014 Beyond
(in millions)
Contractual cash obligations:
Debt $ 1,797 $ 2 $ - $ 600 $ 1,195
Operating leases 458 89 140 76 153
Commercial paper 100 100 - - -
Advances under credit facilities 12 12 - - -
Purchase obligations 787 590 196 1 -
Interest 1,578 104 208 193 1,073
Current portion of uncertain tax positions(a) 6 6 - - -
Contractual cash obligations $ 4,738 $ 903 $ 544 $ 870 $ 2421
(a) The current portion of uncertain tax positions does not include approximately $1.7 billion in additional liabilities associated with uncertain tax positions that are not expected
to be liquidated in Fiscal 2010. We are unable to reliably estimate the expected payment dates for these additional non-current liabilities.
Debt — At January 30, 2009, we had outstanding $300 million in Senior Debentures with the principal balance due April 15, 2028. We also had
outstanding $1.5 billion of long-term unsecured notes that were issued on April 17, 2008, in three tranches: $600 million aggregate principal amount
due 2013, $500 million aggregate principal amount due 2018, and $400 million aggregate principal amount due 2038. Interest is payable semi-
annually on April 15 and October 15 for the Senior Debentures and Notes. For additional information regarding these debt issuances, see Note 2 of
Notes to Consolidated Financial Statements included in "Part II — Item 8 — Financial Statements and Supplementary Data."
Operating Leases — We lease property and equipment, manufacturing facilities, and office space under non-cancellable leases. Certain of these
leases obligate us to pay taxes, maintenance, and repair costs.
Commercial Paper — We 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 of our commercial paper program.
Advances Under Credit Facilities — Dell India Pvt Ltd., our wholly-owned subsidiary, maintains unsecured short-term credit facilities with
Citibank N.A. Bangalore Branch India ("Citibank India") that provide a maximum capacity of $30 million to fund Dell India's working capital and
import buyers' credit needs. Financing is available in both Indian Rupees and foreign currencies. The borrowings are extended on an unsecured basis
based on our guarantee to Citibank N.A. Citibank India can cancel the facilities in whole or in part without prior notice, at which time any amounts
owed under the facilities will become immediately due and payable. Interest on the outstanding loans is charged monthly and is calculated based on
Citibank India's internal cost of funds plus 0.25%. At January 30, 2009, and February 1, 2008, outstanding advances from Citibank India totaled
$12 million and $23 million, respectively, which are included in short-term borrowings on our Consolidated Statement of Financial Position. There
have been no events of default.
Purchase Obligations — Purchase obligations are defined as contractual obligations to purchase goods or services that are enforceable and legally
binding on us. These obligations specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable
price provisions; and the approximate timing of the transaction. Purchase obligations do not include contracts that may be cancelled without penalty.
We utilize several suppliers to manufacture sub-assemblies for our products. Our efficient supply chain management allows us to enter into flexible
and mutually beneficial purchase arrangements with our suppliers in order to minimize inventory risk. Consistent with industry practice, we acquire
raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on our projected
demand and manufacturing needs. These purchase orders are typically fulfilled within
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