Note 2 – Financial Statement Details


	July 1, 2012		December 25, 2011
	(In millions)
Inventories
Raw materials	$	40.0	$	36.9
Work in process		136.2		135.2
Finished goods		63.5		62.1

	$	239.7	$	234.2


	July 1, 2012		December 25, 2011
	(In millions)
Property, plant and equipment
Land and improvements	$	24.7	$	24.0
Buildings and improvements		391.1		382.4
Machinery and equipment		1,747.8		1,732.0
Construction in progress		143.6		151.5

Total property, plant and equipment		2,307.2		2,289.9
Less accumulated depreciation		1,538.7		1,524.5

	$	768.5	$	765.4


	July 1, 2012		December 25, 2011
	(In millions)
Accrued expenses and other current liabilities
Payroll and employee related accruals	$	49.4	$	75.7
Taxes payable		19.1		23.5
Restructuring and impairments		2.2		2.7
Other		23.2		23.8

	$	93.9	$	125.7


	Three Months Ended						Six Months Ended
	July 1, 2012			June 26, 2011			July 1, 2012			June 26, 2011
	(In millions)
Other expense, net
Interest expense	$	1.9		$	1.7		$	4.0		$	3.4
Interest income		(0.5	)		(0.6	)		(1.2	)		(1.3	)
Other (income) expense, net		0.1			2.2			0.2			2.3

Other expense, net	$	1.5		$	3.3		$	3.0		$	4.4

Prior to December 26, 2011, the company depreciated much of its machinery and equipment over an eight-year period. During the first quarter of 2012, the company completed an analysis of the useful life assumptions. In performing this analysis, the company examined the historical usage patterns for machinery and equipment at its wafer fabrication and assembly and test manufacturing facilities. As a result of this analysis, the company determined that, while the useful life of its assembly and test equipment was consistent with the eight year depreciation schedule, the wafer fabrication equipment remained in use beyond the eight-year life assigned to that asset category. The typical life was approximately ten years. At the time the analysis was performed, the company was unaware of any events which would result in a change from this historical pattern. Accordingly, the company determined that it would adjust the estimated useful life assumptions for machinery and equipment at the company’s wafer fabrication facilities from eight years to ten years to better align its depreciation expense with its actual historical experience. As a result, the company realized a reduction in its depreciation expense of approximately $4.8 million and $9.5 million in the second quarter and first six months of 2012, respectively, when compared to depreciation expense under the previous useful life policy.

In addition, the company reassessed the useful lives, which ranged from one to five years, of its molds and tooling equipment in the first quarter. The historical patterns of molds and tooling usage at its assembly and test manufacturing facilities were examined. Based upon the analysis, it was determined three years was the most appropriate life for these assets. This resulted in a net increase to depreciation expense of $0.7 million in the first quarter of 2012. Impacts on the second quarter were immaterial.

The impact of these change in estimates increased net income by $3.8 million or $0.03 per share in the quarter ended July 1, 2012 and by $8.1 million or $0.06 per share for the six months ended July 1, 2012.