Dell 2001 Annual Report Download - page 46

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Table of Contents
The difference between the Company's carrying amounts and fair value of its long-term debt and related interest rate swaps was not material at February 1,
2002 and February 2, 2001.
Financing Arrangements
The Company maintains a $250 million revolving credit facility, which expires in June 2002. At February 1, 2002 and February 2, 2001 this facility was
unused, and the Company currently does not intend to renew this facility. Commitment fees for this facility are payable quarterly and are based on specific
liquidity requirements. Commitment fees paid in fiscal 2002, 2001, and 2000 were not material. As part of this credit facility, the Company must meet certain
covenants. The Company is in compliance with all covenants.
NOTE 4 — Income Taxes
The provision for income taxes consists of the following:
Fiscal Year Ended
February 1, February 2, January 28,
2002 2001 2000
(in millions)
Current:
Domestic $ 574 $ 964 $ 1,008
Foreign 59 168 84
Deferred (148) (174) (307)
Provision for income taxes $ 485 $ 958 $ 785
Income before income taxes and cumulative effect of change in accounting principle included approximately $302 million, $491 million, and $449 million
related to foreign operations in fiscal 2002, 2001, and 2000, respectively.
The Company has not recorded a deferred income tax liability of approximately $711 million for additional taxes that would result from the distribution of
certain earnings of its foreign subsidiaries if they were repatriated. The Company currently intends to reinvest indefinitely these undistributed earnings of its
foreign subsidiaries.
The components of the Company's net deferred tax asset are as follows:
Fiscal Year Ended
February 1, February 2, January 28,
2002 2001 2000
(in millions)
Deferred tax assets:
Deferred service contract income $ 165 $ 148 $ 125
Inventory and warranty provisions 133 81 60
Provisions for product returns and doubtful accounts 58 44 30
Loss carryforwards — 73 219
Credit carryforwards 115 188 101
Other 167 64 —
638 598 535
Deferred tax liabilities:
Unrealized gains on investments (26) (47) (303)
Other — — (74)
Net deferred tax asset $ 612 $ 551 $ 158
Tax credit carryforwards will generally expire between 2003 and 2023.
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