Dell 2002 Annual Report Download - page 46

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Table of Contents
The components of the Company's net deferred tax asset are as follows:
Fiscal Year Ended
January 31, February 1,
2003 2002
(in millions)
Deferred tax assets:
Deferred income $ 186 $ 165
Inventory and warranty provisions 155 133
Investment impairments 118 126
Credit carryforwards — 115
Provisions for product returns and doubtful accounts 44 58
Other 125 135
628 732
Deferred tax liabilities:
Unrealized gains on investments — (26)
Other (145) (94)
(145) (120)
Net deferred tax asset $ 483 $ 612
Current portion (included in other current assets) $ 292 $ 196
Non-current portion (included in other non-current assets) 191 416
Net deferred tax asset $ 483 $ 612
The effective tax rate differed from statutory U.S. federal income tax rate as follows:
Fiscal Year Ended
January 31, February 1, February 2,
2003 2002 2001
U.S. federal statutory rate 35.0% 35.0% 35.0%
Foreign income taxed at different rates (7.9) (6.6) (5.8)
Other 2.8 (0.4) 0.8
Effective tax rate 29.9% 28.0% 30.0%
NOTE 4 — Capitalization
Preferred Stock
Authorized Shares — The Company has the authority to issue five million shares of preferred stock, par value $.01 per share. At January 31, 2003 and
February 1, 2002, no shares of preferred stock were issued or outstanding.
Series A Junior Participating Preferred Stock — In conjunction with the distribution of Preferred Share Purchase Rights (see below), the Company's Board of
Directors designated 200,000 shares of preferred stock as Series A Junior Participating Preferred Stock ("Junior Preferred Stock") and reserved such shares for
issuance upon exercise of the Preferred Share Purchase Rights. At January 31, 2003 and February 1, 2002, no shares of Junior Preferred Stock were issued or
outstanding.
Common Stock
Authorized Shares — As of January 31, 2003, the Company is authorized to issue seven billion shares of common stock.
Share Repurchase Program — The Company has a share repurchase program that authorizes the purchase of up to 1.25 billion shares of common stock to
manage the dilution resulting from shares issued under the Company's employee stock plans. As of the end of fiscal 2003, the Company had
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