DELL INC. | |||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||
(in millions, except per share data and percentages) | |||||||||||
(unaudited) | |||||||||||
Nine Months Ended | % Growth Rates | ||||||||||
October 28, | October 29, | ||||||||||
2011 | 2010 | Yr. to Yr. | |||||||||
GAAP gross margin | $ | 10,426 | $ | 8,105 | 29 | % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | 222 | 209 | |||||||||
Severance and facility actions | 5 | 47 | |||||||||
Acquisition-related | 29 | 2 | |||||||||
Non-GAAP gross margin | $ | 10,682 | $ | 8,363 | 28 | % | |||||
GAAP operating expenses | $ | 6,926 | $ | 5,817 | 19 | % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | (65 | ) | (55 | ) | |||||||
Severance and facility actions | (14 | ) | (65 | ) | |||||||
Acquisition-related | (157 | ) | (57 | ) | |||||||
Other (1) | - | (140 | ) | ||||||||
Non-GAAP operating expenses | $ | 6,690 | $ | 5,500 | 22 | % | |||||
GAAP operating income | $ | 3,500 | $ | 2,288 | 53 | % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | 287 | 264 | |||||||||
Severance and facility actions | 19 | 112 | |||||||||
Acquisition-related | 186 | 59 | |||||||||
Other (1) | - | 140 | |||||||||
Non-GAAP operating income | $ | 3,992 | $ | 2,863 | 39 | % | |||||
GAAP net income | $ | 2,728 | $ | 1,708 | 60 | % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | 287 | 264 | |||||||||
Severance and facility actions | 19 | 112 | |||||||||
Acquisition-related | 186 | 59 | |||||||||
Other (1) | - | 68 | |||||||||
Aggregate adjustment for income taxes | (181 | ) | (123 | ) | |||||||
Non-GAAP net income | $ | 3,039 | $ | 2,088 | 46 | % | |||||
GAAP earnings per share - diluted | $ | 1.46 | $ | 0.87 | 68 | % | |||||
Non-GAAP adjustments per share - diluted | 0.16 | 0.19 | |||||||||
Non-GAAP earnings per share - diluted | $ | 1.62 | $ | 1.06 | 53 | % | |||||
GAAP Diluted WAS | 1,874 | 1,961 | |||||||||
Percentage of Total Net Revenue: |
|||||||||||
GAAP gross margin | 22.6 | % | 17.7 | % | |||||||
Non-GAAP adjustment | 0.6 | % | 0.6 | % | |||||||
Non-GAAP gross margin | 23.2 | % | 18.3 | % | |||||||
GAAP operating expenses | 15.0 | % | 12.7 | % | |||||||
Non-GAAP adjustment | (0.5 | %) | (0.7 | %) | |||||||
Non-GAAP operating expenses | 14.5 | % | 12.0 | % | |||||||
GAAP operating income | 7.6 | % | 5.0 | % | |||||||
Non-GAAP adjustment | 1.1 | % | 1.3 | % | |||||||
Non-GAAP operating income | 8.7 | % | 6.3 | % | |||||||
GAAP net income | 5.9 | % | 3.7 | % | |||||||
Non-GAAP adjustment | 0.7 | % | 0.9 | % | |||||||
Non-GAAP net income | 6.6 | % | 4.6 | % | |||||||
Note: Percentage growth rates and ratios are calculated based on underlying data in thousands. | |||||||||||