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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Comprehensive Income
The following table presents the impact of the restatement adjustments discussed above on Dell's comprehensive income for
Fiscal 2006 and 2005:
Fiscal Year Ended
February 3, 2006 January 28, 2005
As As As As
Reported Restated Reported Restated
(in millions)
Comprehensive income:
Net income $ 3,572 $ 3,602 $ 3,043 $ 3,018
Unrealized gains on foreign currency hedging instruments 11 9 52 46
Unrealized losses on marketable securities (24) (24) (52) (52)
Foreign currency translations adjustments (8) (8) 1 1
Comprehensive income $ 3,551 $ 3,579 $ 3,044 $ 3,013
Cumulative Restatement Adjustments to Previously Reported Beginning Retained Earnings by Category
The following table presents the impact of adjustments on previously reported beginning retained earnings for Fiscal 2006,
Fiscal 2005, Fiscal 2004, and Fiscal 2003.
February 3, January 28, January 30, January 31,
2006 2005 2004 2003
(in millions)
Beginning retained earnings as reported $ 9,174 $ 6,131 $ 3,486 $ 1,364
Revenue Recognition:
Software (21) (9) (7) (2)
Other (216) (217) (102) (64)
Revenue Recognition (237) (226) (109) (66)
Warranty Liabilities 202 223 129 31
Restructuring Reserves (18) (18) (14) 80
Other (45) (35) (49) 32
(Provision) benefit for income taxes 21 4 11 (18)
Cumulative adjustments to beginning retained earnings (77) (52) (32) 59
Beginning retained earnings as restated $ 9,097 $ 6,079 $ 3,454 $ 1,423
NOTE 3 — Financial Instruments
Disclosures About Fair Values of Financial Instruments
The fair value of investments and related interest rate derivative instruments has been estimated based upon market quoted
rates. The fair value of foreign currency forward contracts has been estimated using market quoted rates of foreign
currencies at the applicable balance sheet date. The estimated fair value of foreign currency purchased option contracts is
based on market quoted rates at the applicable balance sheet date and the Black-Scholes option pricing model. The
estimates presented herein are not necessarily indicative of the amounts that Dell could realize in a current market
exchange. Changes in assumptions could significantly affect the estimates.
79