Dell 2006 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2006 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 176

  • 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
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The nature of the restatement adjustments and the impact of the adjustments to Fiscal 2006 are shown in the following table:
Fiscal 2006
Adjustments
Revenue Other Provision
recognition reserves for
As Software Warranty and income As
Reported sales Other liabilities accruals tax(a) Restated
(in millions, except per share data)
Net revenue $ 55,908 $ (248) $ 130 $ — $ (2) $ — $ 55,788
Cost of net revenue 45,958 (244) 124 52 7 — 45,897
Gross margin 9,950 (4) 6 (52) (9) — 9,891
Operating expenses:
Selling, general, and administrative 5,140 — 1 — (90) — 5,051
Research, development, and engineering 463 — — (1) (4) — 458
Total operating expenses 5,603 — 1 (1) (94) — 5,509
Operating income 4,347 (4) 5 (51) 85 — 4,382
Investment and other income, net 227 — 11 (4) (8) — 226
Income before income taxes 4,574 (4) 16 (55) 77 — 4,608
Income tax provision 1,002 4 1,006
Net income $ 3,572 $ 3,602
Earnings per common share:
Basic $ 1.49 $ 1.50
Diluted $ 1.46 $ 1.47
Weighted-average shares outstanding:
Basic 2,403 2,403
Diluted 2,449 2,449
(a) Primarily represents the aggregate tax impact of the adjustments.
73