Dell 2007 Annual Report Download - page 52

Table of Contents
DELL INC.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
Fiscal Year Ended
February 1, February 2, February 3
2008 2007 2006
Net revenue $ 61,133 $ 57,420 $ 55,788
Cost of net revenue(1) 49,462 47,904 45,897
Gross margin 11,671 9,516 9,891
Operating expenses:
Selling, general, and administrative(1) 7,538 5,948 5,051
In-process research and development 83 - -
Research, development, and engineering(1) 610 498 458
Total operating expenses 8,231 6,446 5,509
Operating income 3,440 3,070 4,382
Investment and other income, net 387 275 226
Income before income taxes 3,827 3,345 4,608
Income tax provision 880 762 1,006
Net income $ 2,947 $ 2,583 $ 3,602
Earnings per common share:
Basic $ 1.33 $ 1.15 $ 1.50
Diluted $ 1.31 $ 1.14 $ 1.47
Weighted-average shares outstanding:
Basic 2,223 2,255 2,403
Diluted 2,247 2,271 2,449
(1) Cost of net revenue and operating expenses for the fiscal years ended February 1, 2008 and February 2, 2007, include stock-based compensation expense
pursuant to Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment, ("SFAS 123(R)"). See Note 5 of Notes to
Consolidated Financial Statements for additional information.
The accompanying notes are an integral part of these consolidated financial statements.
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