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# Financing foreign operations - Bonds

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IBM wishes to raise \$1 billion and is trying to decide between a domestic dollar bond issue and a Eurobond issue. The U.S. bond can be issued at a coupon of 6.75 percent, paid semiannually, with underwriting and other expenses totaling 0.95 percent of the issue size. The Eurobond would cost only 0.55 percent to issue but would bear an annual coupon of 6.88 percent. Both issues would mature in ten years.

a. Assuming all else is equal, which is the least expensive issue for IBM?

b. What other factors might IBM want to consider before deciding which bond to issue?

#### Solution Preview

a. In order to find the least expensive option, we need to compare the Yield to Maturity (YTM) of the two options. The YTM is nothing but the IRR or the rate of return available for a given market price. In calculating YTM to IBM, we also need to consider the floatation costs by reducing the amount available to IBM. In the domestic issue, assuming \$1000 face value, floatation costs would be 0.95% or \$9.5 and the net proceed would be 990.5. The YTM to ba calculated on this price. For Euro bond, the ...

#### Solution Summary

The solution explains how to calculate the effective cost of borrowing - domestic bond issue versus eurobond issue

\$2.19

## Purpose of Four Financial Statements

Could you give me your analysis/summary of the purposes of the four basic financial statements.

Selected Companies Overview
Prepare a 1,050-1,400-word overview of the two companies using their annual reports and business intelligence gathered from the corporate web site, industry publications, or publicly available financial web sites (e.g.: finance.yahoo.com, moneycentral.msn.com, annualreports.com, sec.gov).

Introduction - Companies are Dell and Apple.

Exchange
Both Dell and Apple list on the NASDAQ.

Exchange Characteristics
Both Dell and Apple list on the NASDAQ. The NASDAQ is known for listing tech firms for many reasons. First, most tech firms begin as small, sole proprietorship or partnerships and grow to a point where they require enormous capital to grow successfully. Although the New York Stock Exchange is more prestigious, it is more expensive to have an IPO there (almost twice as expensive as NASDAQ). Also, the NYSE is more restrictive, requiring more than NASDAQ to qualify. As such, most young, tech start ups are drawn to NASDAQ. In addition, because the NASDAQ is already so tech heavy, the companies who choose to list there will be compared to the NASDAQ as a whole relative to their financial performance, creating a more apples-to-apples comparison.

Because the purpose of listing on an exchange is to raise capital, a financially-strapped tech company can typically not afford the additional expense of raising capital on the more expensive NYSE.

Because Apple and Dell are tech companies, it is natural they chose to list on NASDAQ.

Outstanding Securities
The types of securities the company has outstanding (bonds, preferred stock, common stock).

Characteristics of Outstanding Securities
The characteristics of these securities that may have caused the company to choose them to raise capital.

Bonds
There are a numerous characteristics when companies are looking at using bonds as source of raising capital. The first characteristic is the face value or also known as par value. Par value is the amount of money the bond receiver will receive when it matures. Bonds are normally issued at face value. Corporate bonds are known to be issued at a par value of \$1,000 and government bonds' par value is greater (Investopedia, 2008).
Another characteristic of a bond is the interest rate. There are bonds that pay interest every six months, once a month, quarterly or annually. There are two types of interest one is a fixed and another is a floating-rate bond.
Maturity is another characteristic that would cause the company to choose a bond as a source of raising capital. The longer the maturity date the higher the interest rate and the longer the bond will fluctuate.
Issuer is very crucial factor to consider. "The issuer's stability is the company's main assurance of getting paid back" (Investopedia, 2008). The best bonds are the government bonds because they are known as risk free assets. The corporate bonds offer a higher yield because of the higher risk but this is to entice investors (Investopedia, 2008).
Stocks
Two types of stocks a company can choose to help raise capital. The types of stocks are preferred and common. Preferred stockholders have a say in the company's assets and earnings. Preferred stockholders receive dividends before common stockholders. If the company files bankruptcy the company must pay the preferred stockholders and the common stockholders receive nothing.
Another difference between preferred and common stocks is the dividends. "When you buy a preferred stock, you will have an idea of when to expect a dividend because they are paid at regular intervals" (Investopedia, 2008). When it comes to common stock the board of directors decides to pay out the dividends and is also known as fixed income security (Investopedia, 2008).
Your analysis/summary of the purposes of the four basic financial statements.

Conclusion

Apple Financials
CONSOLIDATED BALANCE SHEETS
(In millions, except share amounts)
September 29, 2007 September 30, 2006
ASSETS:
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 9,352 \$ 6,392
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,034 3,718
Accounts receivable, less allowances of \$47 and \$52, respectively . 1,637 1,252
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 270
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 782 607
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,805 2,270
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,956 14,509
Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . . . . 1,832 1,281
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 38
Acquired intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . 299 139
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,222 1,238
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$25,347 \$17,205
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 4,970 \$ 3,390
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,329 3,053
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,299 6,443
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,516 778
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,815 7,221
Commitments and contingencies
Shareholders' equity:
Common stock, no par value; 1,800,000,000 shares authorized;
872,328,972 and 855,262,568 shares issued and outstanding,
respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,368 4,355
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,101 5,607
Accumulated other comprehensive income . . . . . . . . . . . . . . . . 63 22
Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,532 9,984
Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . \$25,347 \$17,205
See accompanying Notes to Consolidated Financial Statements.
55
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share amounts)
Three fiscal years ended September 29, 2007 2007 2006 2005
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 24,006 \$ 19,315 \$ 13,931
Cost of sales (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,852 13,717 9,889
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,154 5,598 4,042
Operating expenses:
Research and development (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 782 712 535
Selling, general, and administrative (1) . . . . . . . . . . . . . . . . . . . . . 2,963 2,433 1,864
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,745 3,145 2,399
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,409 2,453 1,643
Other income and expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 365 165
Income before provision for income taxes . . . . . . . . . . . . . . . . . . . . . 5,008 2,818 1,808
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,512 829 480
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 3,496 \$ 1,989 \$ 1,328
Earnings per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 4.04 \$ 2.36 \$ 1.64
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 3.93 \$ 2.27 \$ 1.55
Shares used in computing earnings per share (in thousands):
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 864,595 844,058 808,439
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889,292 877,526 856,878
(1) Includes stock-based compensation expense, which was allocated as follows:
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 35 \$ 21 \$ 3
Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 77 \$ 53 \$ 7
Selling, general, and administrative . . . . . . . . . . . . . . . . . . . . . . \$ 130 \$ 89 \$ 39
See accompanying Notes to Consolidated Financial Statements.
56
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In millions, except share amounts which are in thousands)
Accumulated
Common Stock Deferred Stock Retained CompOrtehheernsive SharTeohtoallders'
Shares Amount Compensation Earnings Income (Loss) Equity
Balances as of September 25, 2004 . . . . . . . . . 782,887 \$2,582 \$(101) \$2,597 \$(15) \$ 5,063
Components of comprehensive income:
Net income . . . . . . . . . . . . . . . . . . . . . — — — 1,328 — 1,328
Change in foreign currency translation . . . . — — — — 7 7
Change in unrealized gain on derivative
instruments, net of tax . . . . . . . . . . . . . — — — — 8 8
Total comprehensive income . . . . . . . . . 1,343
Issuance of stock-based compensation awards. — 7 (7) — — —
Stock-based compensation . . . . . . . . . . . . . — — 47 — — 47
Common stock issued under stock plans . . . . 52,132 547 — — — 547
Tax benefit from employee stock plan awards . — 428 — — — 428
Balances as of September 24, 2005 . . . . . . . . . 835,019 3,564 (61) 3,925 — 7,428
Components of comprehensive income:
Net income . . . . . . . . . . . . . . . . . . . . . — — — 1,989 — 1,989
Change in foreign currency translation . . . . — — — — 19 19
Change in unrealized gain on available-for sale
securities, net of tax . . . . . . . . . . . — — — — 4 4
Change in unrealized gain on derivative
instruments, net of tax . . . . . . . . . . . . . — — — — (1) (1)
Total comprehensive income . . . . . . . . . 2,011
Common stock repurchased . . . . . . . . . . . . (4,574) (48) — (307) — (355)
Stock-based compensation . . . . . . . . . . . . . — 163 — — — 163
Deferred compensation . . . . . . . . . . . . . . . — (61) 61 — — —
Common stock issued under stock plans . . . . 24,818 318 — — — 318
Tax benefit from employee stock plan awards . — 419 — — — 419
Balances as of September 30, 2006 . . . . . . . . . 855,263 4,355 — 5,607 22 9,984
Components of comprehensive income:
Net income . . . . . . . . . . . . . . . . . . . . . — — — 3,496 — 3,496
Change in foreign currency translation . . . . — — — — 51 51
Change in unrealized loss on available-forsale
securities, net of tax . . . . . . . . . . . — — — — (7) (7)
Change in unrealized loss on derivative
instruments, net of tax . . . . . . . . . . . . . — — — — (3) (3)
Total comprehensive income . . . . . . . . . 3,537
Stock-based compensation . . . . . . . . . . . . . — 251 — — — 251
Common stock issued under stock plans, net
of shares withheld for employee taxes . . . . 17,066 364 — (2) — 362
Tax benefit from employee stock plan awards . — 398 — — — 398
Balances as of September 29, 2007 . . . . . . . . . 872,329 \$5,368 \$ — \$9,101 \$ 63 \$14,532
See accompanying Notes to Consolidated Financial Statements.
57

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Three fiscal years ended September 29, 2007 2007 2006 2005
Cash and cash equivalents, beginning of the year . . . . . . . . . . . . . . . . . . . . . . . \$ 6,392 \$ 3,491 \$ 2,969
Operating Activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,496 1,989 1,328
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation, amortization and accretion . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 225 179
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 163 49
Provision for deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 53 50
Excess tax benefits from stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 428
Gain on sale of PowerSchool net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (4) —
Loss on disposition of property, plant, and equipment . . . . . . . . . . . . . . . . . . 12 15 9
Changes in operating assets and liabilities:
Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (385) (357) (121)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (76) (105) (64)
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,540) (1,626) (150)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 (1,040) (35)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,494 1,611 328
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,751 1,296 534
Cash generated by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,470 2,220 2,535
Investing Activities:
Purchases of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,719) (7,255) (11,470)
Proceeds from maturities of short-term investments . . . . . . . . . . . . . . . . . . . . 6,483 7,226 8,609
Proceeds from sales of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,941 1,086 586
Purchases of long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) (25) —
Proceeds from sale of Power School net assets . . . . . . . . . . . . . . . . . . . . . . . . — 40 —
Payment for acquisition of property, plant, and equipment . . . . . . . . . . . . . . . (735) (657) (260)
Payment for acquisition of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . (251) — —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 (58) (21)
Cash (used for) generated by investing activities . . . . . . . . . . . . . . . . . . . . . (3,249) 357 (2,556)
Financing Activities:
Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 365 318 543
Excess tax benefits from stock-based compensation . . . . . . . . . . . . . . . . . . . . 377 361 —
Repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) (355) —
Cash generated by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739 324 543
Increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,960 2,901 522
Cash and cash equivalents, end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 9,352 \$ 6,392 \$ 3,491
Supplemental cash flow disclosures:
Cash paid for income taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 863 \$ 194 \$ 17
See accompanying Notes to Consolidated Financial Statements.

Dell Financials

DELL INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions)

February 1, February 2,
2008 2007

ASSETS
Current assets:
Cash and cash equivalents \$ 7,764 \$ 9,546
Short-term investments 208 752
Accounts receivable, net of allowance 5,961 4,622
Financing receivables, net of allowance 1,732 1,530
Inventories, net of allowance 1,180 660
Other 3,035 2,829

Total current assets 19,880 19,939
Property, plant, and equipment, net of depreciation 2,668 2,409
Investments 1,560 2,147
Long-term financing receivables, net of allowance 407 323
Goodwill 1,648 110
Intangible assets, net of amortization 780 45
Other non-current assets 618 662

Total assets \$ 27,561 \$ 25,635

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings \$ 225 \$ 188
Accounts payable 11,492 10,430
Accrued and other 4,323 5,141
Short-term deferred service revenue 2,486 2,032

Total current liabilities 18,526 17,791
Long-term debt 362 569
Long-term deferred service revenue 2,774 2,189
Other non-current liabilities 2,070 647

Total liabilities 23,732 21,196

Commitments and contingencies (Note 10)

Redeemable common stock and capital in excess of \$.01 par value; shares issued and outstanding: 4 and 5, respectively (Note 4) 94 111

Stockholders' equity:
Preferred stock and capital in excess of \$.01 par value; shares issued and outstanding: none - -
Common stock and capital in excess of \$.01 par value; shares authorized: 7,000; shares issued: 3,320 and 3,307, respectively; shares outstanding: 2,060 and 2,226, respectively 10,589 10,107
Treasury stock at cost: 785 and 606 shares, respectively (25,037 ) (21,033 )
Retained earnings 18,199 15,282
Accumulated other comprehensive loss (16 ) (28 )

Total stockholders' equity 3,735 4,328

Total liabilities and stockholders' equity \$ 27,561 \$ 25,635

________________________________________

DELL INC.

CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)

Fiscal Year Ended
February 1, February 2, February 3
2008 2007 2006

Net revenue \$ 61,133 \$ 57,420 \$ 55,788
Cost of net revenue(1) 49,462 47,904 45,897

Gross margin 11,671 9,516 9,891

Operating expenses:
Selling, general, and administrative(1) 7,538 5,948 5,051
In-process research and development 83 - -
Research, development, and engineering(1) 610 498 458

Total operating expenses 8,231 6,446 5,509

Operating income 3,440 3,070 4,382
Investment and other income, net 387 275 226

Income before income taxes 3,827 3,345 4,608
Income tax provision 880 762 1,006

Net income \$ 2,947 \$ 2,583 \$ 3,602

Earnings per common share:
Basic \$ 1.33 \$ 1.15 \$ 1.50

Diluted \$ 1.31 \$ 1.14 \$ 1.47

Weighted-average shares outstanding:
Basic 2,223 2,255 2,403
Diluted 2,247 2,271 2,449

________________________________________

DELL INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

Fiscal Year Ended
February 1, February 2, February 3,
2008 2007 2006

Cash flows from operating activities:
Net income \$ 2,947 \$ 2,583 \$ 3,602
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 607 471 394
Stock-based compensation 329 368 17
In-process research and development charges 83 - -
Excess tax benefits from stock-based compensation (12 ) (80 ) -
Tax benefits from employee stock plans - - 224
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies 30 37 (3 )
Other 133 61 157
Changes in:
Operating working capital (519 ) 397 (53 )
Non-current assets and liabilities 351 132 413

Net cash provided by operating activities 3,949 3,969 4,751

Cash flows from investing activities:
Investments:
Purchases (2,394 ) (8,343 ) (6,796 )
Maturities and sales 3,679 10,320 11,692
Capital expenditures (831 ) (896 ) (747 )
Acquisition of business, net of cash received (2,217 ) (118 ) -
Proceeds from sale of building - 40 -

Net cash (used in) provided by investing activities (1,763 ) 1,003 4,149

Cash flows from financing activities:
Repurchase of common stock (4,004 ) (3,026 ) (7,249 )
Issuance of common stock under employee plans 136 314 1,051
Excess tax benefits from stock-based compensation 12 80 -
(Repayment) issuance of commercial paper, net (100 ) 100 -
Repayments of borrowings (165 ) (63 ) (81 )
Proceeds from borrowings 66 52 55
Other (65 ) (8 ) (28 )

Net cash used in financing activities (4,120 ) (2,551 ) (6,252 )

Effect of exchange rate changes on cash and cash equivalents 152 71 (73 )

Net (decrease) increase in cash and cash equivalents (1,782 ) 2,492 2,575
Cash and cash equivalents at beginning of year 9,546 7,054 4,479

Cash and cash equivalents at end of year \$ 7,764 \$ 9,546 \$ 7,054

DELL INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in millions)

Common Stock and Accumulated
Capital in Excess of Other
Par Value Treasury Sock Comprehensive
Issued Shares Amount Shares Amount Retained Earnings Loss Other Total

Balances at January 28, 2005 2,769 \$ 8,195 284 \$ (10,758 ) \$ 9,097 \$ (78 ) \$ (44 ) \$ 6,412
Net income - - - - 3,602 - - 3,602
Change in net unrealized loss on investments, net of taxes - - - - - (24 ) - (24 )
Foreign currency translation adjustments - - - - - (8 ) - (8 )
Change in net unrealized loss on derivative instruments, net of taxes - - - - - 9 - 9

Total comprehensive income - - - - - - - 3,579
Stock issuances under employee plans, including tax benefits 49 1,308 - - - - - 1,308
Repurchases - - 204 (7,249 ) - - - (7,249 )
Other - - - - - - (3 ) (3 )

Balances at February 3, 2006 2,818 \$ 9,503 488 \$ (18,007 ) \$ 12,699 \$ (101 ) \$ (47 ) \$ 4,047

Net income - - - - 2,583 - - 2,583
Change in net unrealized loss on investments, net of taxes - - - - - 31 - 31
Foreign currency translation adjustments - - - - - (11 ) - (11 )
Change in net unrealized gain on derivative instruments, net of taxes - - - - - 30 - 30
Valuation of retained interests in securitized assets, net of taxes - - - - - 23 - 23

Total comprehensive income - - - - - - - 2,656
Stock issuances under employee plans(b) 14 196 - - - - - 196
Repurchases - - 118 (3,026 ) - - - (3,026 )
Stock-based compensation expense under SFAS 123(R) - 368 - - - - - 368
Tax benefit from employee stock plans - 56 - - - - - 56
Other and shares issued to subsidiaries 475 (16 ) - - - - 47 31

Balances at February 2, 2007 3,307 \$ 10,107 606 \$ (21,033 ) \$ 15,282 \$ (28 ) \$ - \$ 4,328

Net income - - - - 2,947 - - 2,947
Impact of adoption of SFAS 155 - - - - 29 (23 ) 6
Change in net unrealized gain on investments, net of taxes - - - - - 56 - 56
Foreign currency translation adjustments - - - - - 17 - 17
Change in net unrealized loss on derivative instruments, net of taxes - - - - - (38 ) - (38 )

Total comprehensive income - - - - - - - 2,988
Impact of adoption of FIN 48 - (3 ) - - (59 ) - (62 )
Stock issuances under employee plans(a) 13 153 - - - - - 153
Repurchases - - 179 (4,004 ) - - - (4,004 )
Stock-based compensation expense under SFAS 123(R) - 329 - - - - - 329
Tax benefit from employee stock plans - 3 - - - - - 3

Balance at February 1, 2008 3,320 \$ 10,589 785 \$ (25,037 ) \$ 18,199 \$ (16 ) \$ - \$ 3,735

References

Apple's=
http://www.sec.gov/Archives/edgar/data/320193/000104746907009340/a2181030z10-k.htm

Dell's=
http://www.sec.gov/Archives/edgar/data/826083/000095013408005718/d55156e10vk.htm

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