Dell 2005 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2005 Dell annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

Table of Contents
ITEM 6 — SELECTED FINANCIAL DATA
The following selected financial data should be read in conjunction "Item 7 — Management's Discussion and Analysis of Financial Condition and Results of
Operation" and "Item 8 — Financial Statements and Supplementary Data."
Fiscal Year Ended
February 3, January 28, January 30, January 31, February 1,
2006(a) 2005(b) 2004 2003 2002(d)
(in millions, except per share data)
Results of Operations:
Net revenue $ 55,908 $ 49,205 $ 41,444 $ 35,404 $ 31,168
Gross margin 9,950 9,015 7,552 6,349 5,507
Operating income 4,347 4,254 3,544 2,844 1,789
Net income $ 3,572 $ 3,043 $ 2,645 $ 2,122 $ 1,246
Earnings per common share:
Basic $ 1.49 $ 1.21 $ 1.03 $ 0.82 $ 0.48
Diluted $ 1.46 $ 1.18 $ 1.01 $ 0.80 $ 0.46
Number of weighted average shares outstanding:
Basic 2,403 2,509 2,565 2,584 2,602
Diluted 2,449 2,568 2,619 2,644 2,726
Cash Flow and Balance Sheet Data:
Net cash provided by operating activities $ 4,839 $ 5,310 $ 3,670 $ 3,538 $ 3,797
Cash, cash equivalents and investments(c) 11,749 14,101 11,922 9,905 8,287
Total assets 23,109 23,215 19,311 15,470 13,535
Long-term debt 504 505 505 506 520
Total stockholders' equity $ 4,129 $ 6,485 $ 6,280 $ 4,873 $ 4,694
(a) Results for fiscal 2006 include charges aggregating $442 million ($338 million of other product charges and $104 million in selling, general and administrative expenses) related to the
cost of servicing or replacing certain OptiPlexTM systems that include a vendor part that failed to perform to Dell's specifications, workforce realignment, product rationalizations, excess
facilities and a write-off of goodwill recognized in the third quarter. The related tax effect of these items was $104 million. Fiscal 2006 also includes an $85 million income tax benefit
related to a revised estimate of taxes on the repatriation of earnings under the American Jobs Creation Act of 2004 recognized in the second quarter.
(b) Results for the year ended January 28, 2005 include an income tax charge of $280 million related to the repatriation of earnings under the American Jobs Creation Act of 2004 recorded
in the fourth quarter.
(c) Financing receivables have been separately classified on the balance sheet as of February 3, 2006. As a result, certain balances previously included in investments have been reclassified
as financing receivables to conform to the fiscal 2006 presentation. These reclassifications have no effect on the results of operations or stockholders' equity as previously reported.
(d) Includes a pre-tax charge of $742 million. Approximately $482 million relates to employee termination benefits, facilities closure costs, and other asset impairments and exit costs,
while the balance of $260 million relates to other-than-temporary declines in the fair value of equity securities.
19