| DELL INC. | |||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||
| (in millions, except per share data and percentages) | |||||||||||||
| (unaudited) | |||||||||||||
|
|
|||||||||||||
| Six Months Ended | % Growth Rates | ||||||||||||
|
August 3,
2012 |
July 29,
2011 |
Yr. to Yr. | |||||||||||
| GAAP gross margin | $ | 6,205 | $ | 6,957 | (11 | )% | |||||||
| Non-GAAP adjustments: | |||||||||||||
| Amortization of intangibles | 197 | 145 | |||||||||||
| Severance and facility actions and acquisition-related costs | 35 | 34 | |||||||||||
| Non-GAAP gross margin | $ | 6,437 | $ | 7,136 | (10 | )% | |||||||
| GAAP operating expenses | $ | 4,480 | $ | 4,599 | (3 | )% | |||||||
| Non-GAAP adjustments: | |||||||||||||
| Amortization of intangibles | (63 | ) | (42 | ) | |||||||||
| Severance and facility actions and acquisition-related costs | (113 | ) | (125 | ) | |||||||||
| Non-GAAP operating expenses | $ | 4,304 | $ | 4,432 | (3 | )% | |||||||
| GAAP operating income | $ | 1,725 | $ | 2,358 | (27 | )% | |||||||
| Non-GAAP adjustments: | |||||||||||||
| Amortization of intangibles | 260 | 187 | |||||||||||
| Severance and facility actions and acquisition-related costs | 148 | 159 | |||||||||||
| Non-GAAP operating income | $ | 2,133 | $ | 2,704 | (21 | )% | |||||||
| GAAP net income | $ | 1,367 | $ | 1,835 | (26 | )% | |||||||
| Non-GAAP adjustments: | |||||||||||||
| Amortization of intangibles | 260 | 187 | |||||||||||
| Severance and facility actions and acquisition-related costs | 148 | 159 | |||||||||||
| Aggregate adjustment for income taxes | (139 | ) | (125 | ) | |||||||||
| Non-GAAP net income | $ | 1,636 | $ | 2,056 | (20 | )% | |||||||
| GAAP earnings per share - diluted | $ | 0.77 | $ | 0.97 | (21 | )% | |||||||
| Non-GAAP adjustments per share - diluted | 0.16 | 0.11 | |||||||||||
| Non-GAAP earnings per share - diluted | $ | 0.93 | $ | 1.08 | (14 | )% | |||||||
| Diluted WAS | 1,764 | 1,897 | |||||||||||
|
Percentage of Total Net Revenue: |
|||||||||||||
| GAAP gross margin | 21.5 | % | 22.7 | % | |||||||||
| Non-GAAP adjustment | 0.8 | % | 0.6 | % | |||||||||
| Non-GAAP gross margin | 22.3 | % | 23.3 | % | |||||||||
| GAAP operating expenses | 15.5 | % | 15.0 | % | |||||||||
| Non-GAAP adjustment | (0.6 | )% | (0.6 | )% | |||||||||
| Non-GAAP operating expenses | 14.9 | % | 14.4 | % | |||||||||
| GAAP operating income | 6.0 | % | 7.7 | % | |||||||||
| Non-GAAP adjustment | 1.4 | % | 1.1 | % | |||||||||
| Non-GAAP operating income | 7.4 | % | 8.8 | % | |||||||||
| GAAP net income | 4.7 | % | 6.0 | % | |||||||||
| Non-GAAP adjustment | 1.0 | % | 0.7 | % | |||||||||
| Non-GAAP net income | 5.7 | % | 6.7 | % | |||||||||
Note: Percentage growth rates and ratios are calculated based on
underlying data in thousands.
