COMPAQ COMPUTER CORP filed this 10-K on 01/30/2002

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ITEM 6.  SELECTED CONSOLIDATED FINANCIAL DATA

         The following income statement and balance sheet data have been derived
from Compaq's consolidated financial statements. The information set forth below
is not necessarily indicative of the results of future operations and should be
read in conjunction with the consolidated financial statements and notes thereto
appearing elsewhere in this Annual Report on Form 10-K.


<Table>
<Caption>
Year ended December 31 
(In millions, except per share amounts)                         2001          2000          1999        1998(1)         1997
---------------------------------------                      ----------    ----------    ----------    ----------    ----------
<S>                                                          <C>           <C>           <C>           <C>           <C>       
STATEMENT OF INCOME
Revenue:
    Products(2)                                              $   26,728    $   35,506    $   31,824    $   27,372    $   24,122
    Services                                                      6,826         6,716         6,623         3,797           462
                                                             ----------    ----------    ----------    ----------    ----------
        Total revenue                                            33,554        42,222        38,447        31,169        24,584
                                                             ----------    ----------    ----------    ----------    ----------
Cost of sales:
    Products                                                     21,536        27,624        25,263        21,383        17,500
    Services                                                      4,906         4,793         4,535         2,597           333
                                                             ----------    ----------    ----------    ----------    ----------
        Total cost of sales                                      26,442        32,417        29,798        23,980        17,833
                                                             ----------    ----------    ----------    ----------    ----------
Selling, general and administrative expense                       5,328         6,044         6,341         4,978         2,947
Research and development                                          1,305         1,469         1,660         1,353           817
Restructuring and related activities                                742           (86)          868           393            --
Merger-related costs                                                 44            --            --            --            44
Purchased in-process technology(3)                                   --            --            --         3,196           208
Other (income) expense, net(2)(4)                                   466         1,503        (1,154)          (69)          (23)
                                                             ----------    ----------    ----------    ----------    ----------
                                                                  7,885         8,930         7,715         9,851         3,993
                                                             ----------    ----------    ----------    ----------    ----------
Income (loss) before income taxes                                  (773)          875           934        (2,662)        2,758
Provision (benefit) for income taxes                               (210)          280           365            81           903
                                                             ----------    ----------    ----------    ----------    ----------
Income (loss) before cumulative effect of                          
  accounting change                                                (563)          595           569        (2,743)        1,855
Cumulative effect of accounting change, net of tax(5)              (222)          (26)           --            --            --
                                                             ----------    ----------    ----------    ----------    ----------
Net income (loss)                                            $     (785)   $      569    $      569    $   (2,743)   $    1,855
                                                             ==========    ==========    ==========    ==========    ==========
Earnings (loss) per common share:
Basic:
   Before cumulative effect of accounting change             $    (0.34)   $     0.35    $     0.35    $    (1.71)   $     1.23
   Cumulative effect of accounting change, net of tax             (0.13)        (0.02)           --            --            --
                                                             ----------    ----------    ----------    ----------    ----------
                                                             $    (0.47)   $     0.33    $     0.35    $    (1.71)   $     1.23
                                                             ==========    ==========    ==========    ==========    ==========
Diluted:
   Before cumulative effect of accounting change             $    (0.34)   $     0.34    $     0.34    $    (1.71)   $     1.19
   Cumulative effect of accounting change, net of tax             (0.13)        (0.01)           --            --            --
                                                             ----------    ----------    ----------    ----------    ----------
                                                             $    (0.47)   $     0.33    $     0.34    $    (1.71)   $     1.19
                                                             ==========    ==========    ==========    ==========    ==========
Shares used in computing earnings (loss) per common share:
    Basic                                                         1,688         1,702         1,693         1,608         1,505
    Diluted                                                       1,688         1,742         1,735         1,608         1,564

Cash dividends per common share                              $     0.10    $     0.10    $    0.085    $    0.065    $    0.015

FINANCIAL POSITION
Current assets                                               $   13,278    $   15,111    $   13,849    $   15,167    $   12,017
Total assets                                                     23,689        24,856        27,277        23,051        14,631
Current liabilities                                              11,133        11,549        11,838        10,733         5,202
Long-term obligations                                               600           575            --           422            --
Stockholders' equity                                             11,117        12,080        14,834        11,351         9,429
</Table>


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(1)      1998 results reflect the acquisition of Digital in June 1998.

(2)      2000 and 1999 reflect reclassifications between product revenue and
         other income and expense to reflect the adoption of Emerging Issues
         Task Force Issue 01-9, Accounting for Consideration Given by a Vendor
         to a Customer or a Reseller of the Vendor's Products ("EITF 01-9").

(3)      Represents non-recurring, non-tax-deductible charges associated with
         purchased in-process technology of $3.2 billion in connection with the
         Digital acquisition in 1998, and $208 million in connection with
         acquisitions in 1997.

(4)      Includes a $613 million charge for impairment of investments and
         related assets in 2001; a $1.8 billion charge for impairment of
         investments in 2000; and a $1.2 billion gain on the sale of an 81.5
         percent interest in AltaVista in 1999.

(5)      Effective January 1, 2001, Compaq adopted EITF 01-9. Effective January
         1, 2000, Compaq adopted Staff Accounting Bulletin No. 101, Revenue
         Recognition in Financial Statements, as amended. Pro forma results for
         prior years are not disclosed due to immateriality.



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