Dell 1998 Annual Report Download - page 24

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------- ------- ------
Total operating expenses........................ 2,060 1,406 952
------- ------- ------
Operating income................................ 2,046 1,316 714
Financing and other....................................... 38 52 33
------- ------- ------
Income before income taxes and extraordinary loss....... 2,084 1,368 747
Provision for income taxes................................ 624 424 216
------- ------- ------
Income before extraordinary loss........................ 1,460 944 531
Extraordinary loss, net of taxes.......................... -- -- (13)
------- ------- ------
Net income.............................................. $ 1,460 $ 944 $ 518
======= ======= ======
Basic earnings per common share (in whole dollars):
Income before extraordinary loss........................ $ 0.58 $ 0.36 $ 0.19
Extraordinary loss, net of taxes........................ -- -- (0.01)
------- ------- ------
Earnings per common share............................... $ 0.58 $ 0.36 $ 0.18
======= ======= ======
Diluted earnings per common share (in whole dollars)...... $ 0.53 $ 0.32 $ 0.17
======= ======= ======
Weighted average shares outstanding:
Basic................................................... 2,531 2,631 2,838
Diluted................................................. 2,772 2,952 3,126
The accompanying notes are an integral part of these consolidated financial
statements.
31
<PAGE> 33
DELL COMPUTER CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN MILLIONS)
FISCAL YEAR ENDED
---------------------------------------
JANUARY 29, FEBRUARY 1, FEBRUARY 2,
1999 1998 1997
----------- ----------- -----------
Cash flows from operating activities:
Net income.............................................. $ 1,460 $ 944 $ 518
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization...................... 103 67 47
Tax benefits of employee stock plans............... 444 164 37
Other.............................................. 11 24 29
Changes in:
Operating working capital............................... 367 365 622
Non-current assets and liabilities...................... 51 28 109
-------- -------- -------
Net cash provided by operating activities....... 2,436 1,592 1,362
-------- -------- -------
Cash flows from investing activities:
Marketable securities:
Purchases............................................ (16,459) (12,305) (9,538)
Maturities and sales................................. 15,341 12,017 8,891
Capital expenditures.................................... (296) (187) (114)
-------- -------- -------
Net cash used in investing activities........... (1,414) (475) (761)
-------- -------- -------
Cash flows from financing activities:
Purchase of common stock................................ (1,518) (1,023) (495)
Issuance of common stock under employee plans........... 212 88 57
Proceeds from issuance of long-term debt, net of
issuance costs....................................... 494 -- --
Cash received from sale of equity options and other..... -- 37 --
Repurchase of 11% senior notes.......................... -- -- (95)
-------- -------- -------
Net cash used in financing activities........... (812) (898) (533)
-------- -------- -------
Effect of exchange rate changes on cash................... (10) (14) (8)
-------- -------- -------
Net increase in cash...................................... 200 205 60
Cash at beginning of period............................... 320 115 55
-------- -------- -------
Cash at end of period..................................... $ 520 $ 320 $ 115
======== ======== =======
The accompanying notes are an integral part of these consolidated financial
statements.