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Table of Contents
Impact of Restatement Adjustments on Fiscal 2004 Net Income
The following table presents the impact of the restatement adjustments on our Consolidated Statement of Income for the
fiscal year ended January 30, 2004:
Fiscal 2004
Adjustments
Revenue Other Provision
recognition reserves for
As Software Warranty Restruc- and income As
Reported sales Other(a) liabilities turing accruals tax(b) Restated
(in millions, except per share data)
Net revenue $ 41,444 $ 4 $ (121) $ — $ — $ — $ — $ 41,327
Cost of net revenue 33,892 6 (6) (94) — (34) — 33,764
Gross margin 7,552 (2) (115) 94 — 34 — 7,563
Operating expenses:
Selling, general, and administrative 3,544 — (1) — 4 57 — 3,604
Research, development, and engineering 464 — — — — (30) — 434
Total operating expenses 4,008 — (1) — 4 27 — 4,038
Operating income 3,544 (2) (114) 94 (4) 7 — 3,525
Investment and other income, net 180 — (1) — — 7 — 186
Income before income taxes 3,724 (2) (115) 94 (4) 14 — 3,711
Income tax provision 1,079 7 1,086
Net income $ 2,645 $ 2,625
Earnings per common share:
Basic $ 1.03 $ 1.02
Diluted $ 1.01 $ 1.00
Weighted-average shares outstanding:
Basic 2,565 2,565
Diluted 2,619 2,619
(a) Primarily includes adjustments to the deferral and amortization of revenue from extended warranty and enhanced service level agreements, and
adjustments to the period end in-transit revenue deferrals. See Note 2 of Notes to Consolidated Financial Statements included in "Part II —
Item 8 — Financial Statements and Supplementary Data" for additional detail.
(b) Primarily represents the aggregate tax impact of the adjustments.
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