Compaq Computer Corporation and Subsidiaries - Page 24




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                           Power              Memory    Video   Backplane/            
                          SuppliesProcessors  Boards    Boards   Other     Total      
   Vendor Totals                                                                      
   Units                   368,813    607,993   962,967  382,514 1,295,044 3,617,331  
   Purchases             $13,658,860$35,274,854$86,736,072$13,274,150$48,591,109$197,535,045 
   Turnkey equivalent purchases$18,640,376$203,274,622$205,427,395$60,931,536 $108,837,714$597,111,643 
   % of Compaq U.S. standard cost                                            100.2%   
   Average weighted by Compaq                                                         
   Asia production                                                            93.1%   

          (Generally, the turnkey equivalent is greater than the actual               
          purchases because the turnkey equivalent includes the aggregate             
          purchase price in all transactions plus material cost and                   
          material markup components to adjust consignment transactions to            
          the turnkey basis.  There are instances in the chart when the               
          turnkey equivalent is less than the actual purchases from an                
          unrelated subcontractor (i.e., Avex, Citizen, and SCI).  This               
          result is seemingly inconsistent with the foregoing definition of           
          turnkey equivalent.                                                         
               The deviation in the chart from the norm is attributable to            
          petitioner's inability to locate standard cost data from Compaq             
          U.S. to correspond with the PCA's purchased in certain                      
          transactions with the identified unrelated subcontractors.                  
          Accordingly, petitioner excluded the transactions from the                  
          analysis because petitioner was unable to compare the purchases             
          from the unrelated subcontractor with the appropriate Compaq U.S.           
          standard cost.                                                              
               This chart compares the Compaq U.S. turnkey equivalent                 
          payments to unrelated subcontractors to the Compaq U.S. standard            





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Last modified: May 25, 2011