Dell 2010 Annual Report Download - page 52

Table of Contents
Capital Commitments
Share Repurchase Program — We have a share repurchase program that authorizes us to purchase shares of our common stock through a
systematic program of open market purchases 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. 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 2011 and Fiscal 2010, we spent $444 million and $367 million, respectively, on property, plant,
and equipment primarily in connection with our global expansion efforts and infrastructure investments made to support future growth.
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. Aggregate capital expenditures
for Fiscal 2012, which will be primarily related to infrastructure investments and strategic initiatives, are currently expected to total
approximately $700 million to $750 million. These expenditures will be primarily funded from our cash flows from operating activities.
Restricted Cash — As of January 28, 2011 and January 29, 2010, we had restricted cash in the amounts of $25 million and $147 million,
respectively. The balance at January 29, 2010 was primarily related to an agreement between DFS and CIT which required us to maintain
an escrow cash account that was held as recourse reserves for credit losses, performance fee deposits related to our private label credit
card, as well as amounts maintained in escrow accounts related to our recent acquisitions. During Fiscal 2011, the agreement between
DFS and CIT was terminated and the restricted cash that was held on deposit was returned to CIT. The balance at January 28, 2011 was
primarily related to various escrow accounts in connection with our acquisitions.
Contractual Cash Obligations
The following table summarizes our contractual cash obligations at January 28, 2011:
Payments Due by Period
Fiscal Fiscal Fiscal
Total 2012 2013-2014 2015-2016 Thereafter
(in millions)
Contractual cash obligations:
Principal payments on long term debt $ 5,050 $ - $ 1,750 $ 1,200 $ 2,100
Operating leases 375 106 124 77 68
Purchase obligations 365 293 71 1 -
Interest 2,356 220 402 292 1,442
Current portion of uncertain tax positions(a) - - - - -
Contractual cash obligations $ 8,146 $ 619 $ 2,347 $ 1,570 $ 3,610
(a) We had approximately $2.3 billion in additional liabilities associated with uncertain tax positions that are not expected to be liquidated in Fiscal 2012. We are
unable to reliably estimate the expected payment dates for these additional non-current liabilities.
Principal Payments on Long Term Debt — Our expected principal cash payments related to long term debt are exclusive of hedge
accounting adjustments or discounts and premiums. We have outstanding long-term unsecured notes with varying maturities. For
additional information, see Note 5 of Notes to Consolidated Financial Statements under "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.
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
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