
	(In millions, except per share amounts)
	2011												2010
	Dec. 31			Oct. 1			Jul. 2			Apr. 2			Dec. 25			Sep. 25			Jun. 26			Mar. 27
Net revenue	$	1,691		$	1,690		$	1,574		$	1,613		$	1,649		$	1,618		$	1,653		$	1,574
Cost of sales		918			934			854			922			906			879			915			833
Gross margin		773			756			720			691			743			739			738			741
Research and development		358			361			367			367			352			359			371			323
Marketing, general and administrative		243			249			239			261			250			236			229			219
Legal settlements⁽¹⁾		—			—			—			—			(283	)		—			—			—
Amortization of acquired intangible assets		3			8			9			9			11			16			17			17
Restructuring charges (reversals), net⁽²⁾		98			—			—			—			—			—			(4	)		—
Operating income		71			138			105			54			413			128			125			182
Interest income		2			3			2			3			2			3			3			3
Interest expense		(43	)		(42	)		(47	)		(48	)		(39	)		(56	)		(55	)		(49	)
Other income (expense), net		(207	)⁽³⁾		(7	)		4			11			14			(6	)		(1	)		304
Income before equity income (loss) and dilution gain in investee and income taxes		(177	)		92			64			20			390			69			72			440
Provision (benefit) for income taxes		(4	)		(5	)		3			2			42	⁽⁴⁾		1			5			—
Equity income (loss) and dilution gain in investee, net⁽⁵⁾		—			—			—			492			27			(186	)		(120	)		(183	)
Net income (loss) from continuing operations		(173	)		97			61			510			375			(118	)		(43	)		257
Income (loss) from discontinued operations, net of tax		(4	)⁽⁶⁾		—			—			—			—			—			—			—
Net income (loss)		(177	)		97			61			510			375			(118	)		(43	)		257
Net income (loss) per share
Basic Continuing operations	$	(0.24	)	$	0.13		$	0.08		$	0.71		$	0.52		$	0.17		$	0.06		$	0.36
Discontinued operations		(0.01	)		—			—			—			—			—			—			—
Basic net income (loss) per share	$	(0.24	)	$	0.13		$	0.08		$	0.71		$	0.52		$	0.17		$	0.06		$	0.36
Diluted Continuing operations	$	(0.24	)	$	0.13		$	0.08		$	0.68		$	0.50		$	0.17		$	0.06		$	0.35
Discontinued operations		(0.01	)		—			—			—			—			—			—			—
Diluted net income (loss) per share	$	(0.24	)	$	0.13		$	0.08		$	0.68		$	0.50		$	0.17		$	0.06		$	0.35
Shares used in per share calculation
Basic		732			729			724			720			717			713			709			707
Diluted		732			741			743			764			758			713			709			754

⁽¹⁾	On December 22, 2010, the Company entered into settlement agreement with Samsung. Pursuant to the settlement agreement, Samsung agreed to pay the Company $283 million, net of withholding taxes. The Company recorded this amount as a gain in 2010.

⁽²⁾

During the fourth fiscal quarter of 2011, the Company implemented a restructuring plan and incurred a net restructuring charge of $98 million primarily related to severance and costs related to the continuation of certain employee benefits, contract or program termination costs and asset impairments.

⁽³⁾	During the fourth quarter of 2011, the Company recorded a non-cash impairment charge of approximately $209 million related to its investment in GF.

⁽⁴⁾	The tax provision in the fourth quarter of 2010 is primarily due to withholding taxes that the Company paid in connection with the settlement agreement with Samsung.

⁽⁵⁾

As of beginning of 2010, the Company deconsolidated GF and began to account for its ownership interest in GF under the equity method of accounting. The Company recorded a non-cash gain of $325 million on deconsolidation of GF and a loss of $462 million for the Company's share of GF's operating results in 2010. As of beginning of 2011, the Company changed the method of accounting for its investment GF from the equity method to the cost method of accounting. As a result of the change, the Company recognized a non-cash gain of approximately $492 million in the first quarter of 2011, net of certain transaction related charges.

⁽⁶⁾

In the fourth fiscal quarter of 2008, the Company sold its Digital Television business unit to Broadcom Corporation. The Company had classified its Digital Television unit as discontinued operations at the time it decided to divest the business unit. Pursuant to the asset sale agreement, Broadcom had three years after the closing date to obtain reimbursement from the Company for a portion of any severance costs that Broadcom incurred during this time period to the extent the severance costs related to any of the Company's former employees. The loss from discontinued operations represents payments to Broadcom in the fourth fiscal quarter of 2011.