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Table of Contents
Impact of Restatement Adjustments on Fiscal 2003 Net Income
The following table presents the impact of the restatement adjustments on our Consolidated Statement of Income for the
fiscal year ended January 31, 2003:
Fiscal 2003
Adjustments
Revenue Other Provision
recognition reserves for
As Software Warranty Restruc- and income As
Reported sales Other(b) liabilities turing accruals(a) tax(c) Restated
(in millions, except per share data)
Net revenue $ 35,404 $ (78) $ (64) $ — $ — $ — $ — $ 35,262
Cost of net revenue 29,055 (73) (26) (98) 22 (56) — 28,824
Gross margin 6,349 (5) (38) 98 (22) 56 — 6,438
Operating expenses:
Selling, general, and administrative 3,050 — (5) — 72 128 — 3,245
Research, development, and engineering 455 — — — — — — 455
Total operating expenses 3,505 — (5) — 72 128 — 3,700
Operating income 2,844 (5) (33) 98 (94) (72) — 2,738
Investment and other income, net 183 — (5) — — (9) — 169
Income before income taxes 3,027 (5) (38) 98 (94) (81) — 2,907
Income tax provision 905 (29) 876
Net income $ 2,122 $ 2,031
Earnings per common share:
Basic $ 0.82 $ 0.79
Diluted $ 0.80 $ 0.77
Weighted-average shares outstanding:
Basic 2,584 2,584
Diluted 2,644 2,644
(a) Primarily includes adjustments in the recognition of the benefit of certain vendor funding arrangements, and adjustments to the lease accruals
for certain Dell facilities. See Note 2 of Notes to Consolidated Financial Statements included in "Part II — Item 8 — Financial Statements and
Supplementary Data" for additional details.
(b) Other revenue recognition primarily includes adjustments to the recognition of deferred warranty revenue associated with the sale of extended
warranties and enhanced service level agreements. See Note 2 of Notes to Consolidated Financial Statements included in "Part II — Item 8 —
Financial Statements and Supplementary Data" for additional details.
(c) Primarily represents the aggregate tax impact of the adjustments.
33