Dell 2009 Annual Report Download - page 83

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 8 — SEVERANCE AND FACILITY ACTIONS
During Fiscal 2010 and Fiscal 2009, Dell completed a series of individual cost reduction and facility exit activities designed to enhance
operating efficiency and to reduce costs. Through these actions, Dell has reduced its headcount and has consolidated, closed and executed
sales agreements related to selected facilities. These have included manufacturing, logistics, and call center operations in locations such
as Winston-Salem, North Carolina, Limerick, Ireland, and Lodz, Poland. As of January 29, 2010, and January 30, 2009, the accrual
related to these various cost reductions and efficiency actions was $105 and $98 million, respectively, and is included in accrued and
other liabilities in the Consolidated Statements of Financial Position.
The following table sets forth the activity related to Dell's severance and facility actions liability:
Severance Facility
Costs Actions Total
(in millions)
Balance as of February 1, 2008 $ 23 $ 12 $ 35
Severance and facility charges to provision 235 2 237
Cash paid (159) (3) (162)
Other adjustments(a) (11) (1) (12)
Balance as of January 30, 2009 88 10 98
Severance and facility charges to provision 281 55 336
Cash paid (296) (37) (333)
Other adjustments(a) 5 (1) 4
Balance as of January 29, 2010 $ 78 $ 27 $ 105
(a) Other adjustments relate primarily to foreign currency translation adjustments.
Severance and facility action charges of $481 million and $282 million for Fiscal 2010 and 2009, respectively, are composed of the
following:
Fiscal Year Ended
January 29, January 30,
2010 2009
(in millions)
Severance and facility actions $ 336 $ 237
Accelerated depreciation and other facility charges 145 45
Total severance and facility action costs $ 481 $ 282
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