DELL INC. | |||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||
(in millions, except per share data and percentages) | |||||||||||||
(unaudited) | |||||||||||||
Fiscal Year Ended | % Growth Rates | ||||||||||||
January 28, | January 29, | ||||||||||||
2011 | 2010 | Yr. to Yr. | |||||||||||
GAAP gross margin | $ | 11,396 | $ | 9,261 | 23 | % | |||||||
Non-GAAP adjustments: | |||||||||||||
Amortization of intangibles | 278 | 151 | |||||||||||
Severance and facility actions | 53 | 236 | |||||||||||
Acquisition-related | 4 | 1 | |||||||||||
Non-GAAP gross margin | $ | 11,731 | $ | 9,649 | 22 | % | |||||||
GAAP operating expenses | $ | 7,963 | $ | 7,089 | 12 | % | |||||||
Non-GAAP adjustments: | |||||||||||||
Amortization of intangibles | (71 | ) | (54 | ) | |||||||||
Severance and facility actions | (76 | ) | (245 | ) | |||||||||
Acquisition-related | (94 | ) | (115 | ) | |||||||||
Other (1) | (140 | ) | - | ||||||||||
Non-GAAP operating expenses | $ | 7,582 | $ | 6,675 | 14 | % | |||||||
GAAP operating income | $ | 3,433 | $ | 2,172 | 58 | % | |||||||
Non-GAAP adjustments: | |||||||||||||
Amortization of intangibles | 349 | 205 | |||||||||||
Severance and facility actions | 129 | 481 | |||||||||||
Acquisition-related | 98 | 116 | |||||||||||
Other (1) | 140 | - | |||||||||||
Non-GAAP operating income | $ | 4,149 | $ | 2,974 | 40 | % | |||||||
GAAP net income | $ | 2,635 | $ | 1,433 | 84 | % | |||||||
Non-GAAP adjustments: | |||||||||||||
Amortization of intangibles | 349 | 205 | |||||||||||
Severance and facility actions | 129 | 481 | |||||||||||
Acquisition-related | 98 | 116 | |||||||||||
Other (1) | 68 | - | |||||||||||
Aggregate adjustment for income taxes | (173 | ) | (181 | ) | |||||||||
Non-GAAP net Income | $ | 3,106 | $ | 2,054 | 51 | % | |||||||
GAAP earnings per share - diluted | $ | 1.35 | $ | 0.73 | 85 | % | |||||||
Non-GAAP adjustments per share - diluted | 0.24 | 0.32 | |||||||||||
Non-GAAP earnings per share - diluted | $ | 1.59 | $ | 1.05 | 51 | % | |||||||
GAAP Diluted WAS | 1,955 | 1,962 | |||||||||||
Percentage of Total Net Revenue: |
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GAAP gross margin | 18.5 | % | 17.5 | % | |||||||||
Non-GAAP adjustment | 0.6 | % | 0.7 | % | |||||||||
Non-GAAP gross margin | 19.1 | % | 18.2 | % | |||||||||
GAAP operating expenses | 12.9 | % | 13.4 | % | |||||||||
Non-GAAP adjustment | (0.6 | %) | (0.8 | %) | |||||||||
Non-GAAP operating expenses | 12.3 | % | 12.6 | % | |||||||||
GAAP operating income | 5.6 | % | 4.1 | % | |||||||||
Non-GAAP adjustment | 1.1 | % | 1.5 | % | |||||||||
Non-GAAP operating income | 6.7 | % | 5.6 | % | |||||||||
Note: Percentage growth rates and ratios are calculated based on underlying data in thousands. | |||||||||||||
(1) Other for the fiscal year ended January 28, 2011 includes amounts for the $100 million settlement of the SEC investigation and a $40 million settlement for a securities litigation matter, which are both recorded in operating expenses, offset by Dell's receipt of a $72 million merger termination fee, which is recorded in Interest and Other, Net. |
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