FORM 8-K |
Delaware (State or Other Jurisdiction of Incorporation or Organization) | 94-2896096 (I.R.S. Employer I. D. No.) |
Exhibit | Description | |
99.1 | Press release, dated July 26, 2012 announcing the Company's preliminary financial results for the fourth quarter of fiscal year 2012. |
Maxim Integrated Products, Inc. | |
By:/s/ Bruce Kiddoo | |
Bruce Kiddoo Senior Vice President and Chief Financial Officer |
Exhibit | Description | |
99.1 | Press release, dated July 26, 2012 announcing the Company's preliminary financial results for the fourth quarter of fiscal year 2012. Also provided in PDF format as a courtesy. |
• | Revenue: $605 million |
• | Gross Margin: 61.5% GAAP (63.0% excluding special expense items) |
• | EPS: $0.37 GAAP ($0.45 excluding special items) |
• | Cash, cash equivalents, and short term investments: $956 million |
• | Fiscal first quarter revenue outlook: $605 million to $635 million |
• | Quarterly dividend increased 9% to $0.24 per share |
• | $13.4 million pre-tax charge for acquisition related items |
• | $22.4 million pre-tax charge for impairment of long-lived assets |
• | Cash flow from operations: $190 million (31% of revenue) |
• | Net capital expenditures: $75 million |
• | Dividends: $64 million ($0.22 per share) |
• | Stock repurchases: $56 million |
• | Revenue: $605 million to $635 million |
• | Gross Margin: 59% to 62% GAAP (61% to 64% excluding special expense items) |
• | EPS: $0.38 to $0.42 GAAP ($0.41 to $0.45 excluding special expense items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | June 25, 2011 | June 30, 2012 | June 25, 2011 | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
Net revenues | $ | 604,956 | $ | 571,212 | $ | 626,491 | $ | 2,403,529 | $ | 2,472,341 | |||||||||||
Cost of goods sold (1, 2, 3) | 232,967 | 235,782 | 235,666 | 952,677 | 942,377 | ||||||||||||||||
Gross profit | 371,989 | 335,430 | 390,825 | 1,450,852 | 1,529,964 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and development (1) | 134,007 | 136,075 | 136,573 | 552,379 | 525,308 | ||||||||||||||||
Selling, general and administrative (1) | 79,980 | 78,011 | 74,537 | 321,273 | 292,494 | ||||||||||||||||
Intangible asset amortization (2) | 4,049 | 4,029 | 4,200 | 16,737 | 18,752 | ||||||||||||||||
Impairment of long-lived assets (4) | 22,383 | 7,712 | — | 30,095 | — | ||||||||||||||||
Severance and restructuring | 18 | 228 | (423 | ) | 6,785 | 1,247 | |||||||||||||||
Other operating (income) expenses, net (5) | (4,469 | ) | (2,511 | ) | (1,984 | ) | (11,214 | ) | 19,124 | ||||||||||||
Total operating expenses | 235,968 | 223,544 | 212,903 | 916,055 | 856,925 | ||||||||||||||||
Operating income | 136,021 | 111,886 | 177,922 | 534,797 | 673,039 | ||||||||||||||||
Interest and other (expense) income, net (6) | (108 | ) | (230 | ) | (2,022 | ) | (2,064 | ) | (11,368 | ) | |||||||||||
Income before provision for income taxes | 135,913 | 111,656 | 175,900 | 532,733 | 661,671 | ||||||||||||||||
Provision for income taxes (7,8) | 25,279 | 88,948 | 50,307 | 177,815 | 172,662 | ||||||||||||||||
Income from continuing operations | 110,634 | 22,708 | 125,593 | 354,918 | 489,009 | ||||||||||||||||
Income from discontinued operations, net of tax (9) | — | 31,809 | — | 31,809 | — | ||||||||||||||||
Net income | $ | 110,634 | $ | 54,517 | $ | 125,593 | $ | 386,727 | $ | 489,009 | |||||||||||
Earnings per share: basic | |||||||||||||||||||||
From continuing operations | $ | 0.38 | $ | 0.08 | $ | 0.42 | $ | 1.21 | $ | 1.65 | |||||||||||
From discontinued operations, net of tax (9) | — | 0.11 | — | 0.11 | — | ||||||||||||||||
Basic | $ | 0.38 | $ | 0.19 | $ | 0.42 | $ | 1.32 | $ | 1.65 | |||||||||||
Earnings per share: diluted | |||||||||||||||||||||
From continuing operations | $ | 0.37 | $ | 0.07 | $ | 0.41 | $ | 1.18 | $ | 1.61 | |||||||||||
From discontinued operations, net of tax (9) | — | 0.11 | — | 0.11 | — | ||||||||||||||||
Diluted | $ | 0.37 | $ | 0.18 | $ | 0.41 | $ | 1.29 | $ | 1.61 | |||||||||||
Shares used in the calculation of earnings per share: | |||||||||||||||||||||
Basic | 292,757 | 292,276 | 295,751 | 292,810 | 296,755 | ||||||||||||||||
Diluted | 299,793 | 300,221 | 303,944 | 300,002 | 303,377 | ||||||||||||||||
Dividends paid per share | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.88 | $ | 0.84 | |||||||||||
SCHEDULE OF SPECIAL EXPENSE ITEMS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | June 25, 2011 | June 30, 2012 | June 25, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of goods sold: | |||||||||||||||||||||
Intangible asset amortization (2) | $ | 9,392 | $ | 9,787 | $ | 7,977 | $ | 36,693 | $ | 30,164 | |||||||||||
Acquisition related inventory write up (3) | — | — | — | 1,801 | 5,677 | ||||||||||||||||
Total | $ | 9,392 | $ | 9,787 | $ | 7,977 | $ | 38,494 | $ | 35,841 | |||||||||||
Operating expenses: | |||||||||||||||||||||
Intangible asset amortization (2) | $ | 4,049 | $ | 4,029 | $ | 4,200 | $ | 16,737 | $ | 18,752 | |||||||||||
Impairment of long-lived assets (4) | 22,383 | 7,712 | — | 30,095 | — | ||||||||||||||||
Severance and restructuring | 18 | 228 | (423 | ) | 6,785 | 1,247 | |||||||||||||||
Other operating (income) expenses, net (5) | (4,469 | ) | (2,511 | ) | (1,984 | ) | (11,214 | ) | 19,124 | ||||||||||||
Total | $ | 21,981 | $ | 9,458 | $ | 1,793 | $ | 42,403 | $ | 39,123 | |||||||||||
Interest and other expense (income), net (6) | $ | 550 | $ | — | $ | — | $ | (1,226 | ) | $ | — | ||||||||||
Total | $ | 550 | $ | — | $ | — | $ | (1,226 | ) | $ | — | ||||||||||
Provision for income taxes: | |||||||||||||||||||||
Reversal of tax reserves (7) | $ | — | $ | (2,272 | ) | $ | (1,624 | ) | $ | (2,272 | ) | $ | (38,947 | ) | |||||||
International restructuring (8) | 2,751 | 65,293 | 6,791 | 65,389 | 21,801 | ||||||||||||||||
Total | $ | 2,751 | $ | 63,021 | $ | 5,167 | $ | 63,117 | $ | (17,146 | ) | ||||||||||
Discontinued operations: | |||||||||||||||||||||
Income from discontinued operations, net of tax (9) | $ | — | $ | (31,809 | ) | $ | — | $ | (31,809 | ) | $ | — | |||||||||
Total | $ | — | $ | (31,809 | ) | $ | — | $ | (31,809 | ) | $ | — | |||||||||
(1) Includes stock-based compensation charges. | |||||||||||||||||||||
(2) Includes intangible asset amortization related to acquisitions. | |||||||||||||||||||||
(3) Includes expense related to fair value write up of inventory acquired as part of acquisitions. | |||||||||||||||||||||
(4) Includes impairment charges relating to land and buildings held for sale, wafer fab and end of line manufacturing equipment. | |||||||||||||||||||||
(5) Other operating (income) expenses, net are primarily for loss (gain) on sale of land and buildings, contingent consideration adjustments related to certain acquisitions, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off. | |||||||||||||||||||||
(6) Includes gain on sale and impairment of privately-held companies. | |||||||||||||||||||||
(7) Includes reversal of tax reserves related to audit completion and expiration of statute of limitations. | |||||||||||||||||||||
(8) Includes impact due to implementation of international restructuring. | |||||||||||||||||||||
(9) Includes gain on sale, net of tax relating to certain businesses divested. | |||||||||||||||||||||
STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, 2012 | Stock Options | Restricted Stock Units | Employee Stock Purchase Plan | Total | ||||||||||||
Cost of goods sold | $ | 462 | $ | 2,206 | $ | 423 | $ | 3,091 | ||||||||
Research and development expense | 1,607 | 8,331 | 1,413 | 11,351 | ||||||||||||
Selling, general and administrative expense | 1,468 | 4,518 | 462 | 6,448 | ||||||||||||
Total | $ | 3,537 | $ | 15,055 | $ | 2,298 | $ | 20,890 | ||||||||
Three Months Ended March 31, 2012 | ||||||||||||||||
Cost of goods sold | $ | 470 | $ | 2,217 | $ | 412 | $ | 3,099 | ||||||||
Research and development expense | 1,742 | 8,203 | 1,602 | 11,547 | ||||||||||||
Selling, general and administrative expense | 1,836 | 5,072 | 484 | 7,392 | ||||||||||||
Total | $ | 4,048 | $ | 15,492 | $ | 2,498 | $ | 22,038 | ||||||||
Three Months Ended June 25, 2011 | ||||||||||||||||
Cost of goods sold | $ | 516 | $ | 2,101 | $ | 405 | $ | 3,022 | ||||||||
Research and development expense | 2,016 | 8,472 | 1,434 | 11,922 | ||||||||||||
Selling, general and administrative expense | 1,485 | 4,543 | 436 | 6,464 | ||||||||||||
Total | $ | 4,017 | $ | 15,116 | $ | 2,275 | $ | 21,408 | ||||||||
Year Ended June 30, 2012 | ||||||||||||||||
Cost of goods sold | $ | 2,014 | $ | 9,387 | $ | 1,738 | $ | 13,139 | ||||||||
Research and development expense | 7,844 | 35,699 | 5,525 | 49,068 | ||||||||||||
Selling, general and administrative expense | 6,436 | 19,493 | 1,731 | 27,660 | ||||||||||||
Total | $ | 16,294 | $ | 64,579 | $ | 8,994 | $ | 89,867 | ||||||||
Year Ended June 25, 2011 | ||||||||||||||||
Cost of goods sold | $ | 2,625 | $ | 9,819 | $ | 1,557 | $ | 14,001 | ||||||||
Research and development expense | 11,325 | 36,926 | 5,435 | 53,686 | ||||||||||||
Selling, general and administrative expense | 6,120 | 18,944 | 1,546 | 26,610 | ||||||||||||
Total | $ | 20,070 | $ | 65,689 | $ | 8,538 | $ | 94,297 | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Unaudited) | ||||||||||||
June 30, 2012 | March 31, 2012 | June 25, 2011 | ||||||||||
(in thousands) | ||||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 881,060 | $ | 860,551 | $ | 962,541 | ||||||
Short-term investments | 75,326 | 75,405 | 50,346 | |||||||||
Total cash, cash equivalents and short-term investments | 956,386 | 935,956 | 1,012,887 | |||||||||
Accounts receivable, net | 317,461 | 296,255 | 297,632 | |||||||||
Inventories | 242,162 | 220,153 | 237,928 | |||||||||
Deferred tax assets | 98,180 | 105,298 | 113,427 | |||||||||
Other current assets | 85,177 | 79,584 | 65,978 | |||||||||
Total current assets | 1,699,366 | 1,637,246 | 1,727,852 | |||||||||
Property, plant and equipment, net | 1,353,606 | 1,361,300 | 1,308,850 | |||||||||
Intangible assets, net | 208,913 | 222,354 | 204,263 | |||||||||
Goodwill | 423,073 | 423,073 | 265,125 | |||||||||
Other assets | 52,988 | 26,264 | 21,653 | |||||||||
TOTAL ASSETS | $ | 3,737,946 | $ | 3,670,237 | $ | 3,527,743 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 147,086 | $ | 132,906 | $ | 110,153 | ||||||
Income taxes payable | 22,589 | 21,807 | 3,912 | |||||||||
Accrued salary and related expenses | 191,846 | 181,943 | 215,627 | |||||||||
Accrued expenses | 64,092 | 70,297 | 47,767 | |||||||||
Current portion of long term debt | 303,496 | 1,945 | — | |||||||||
Deferred income on shipments to distributors | 26,280 | 28,729 | 36,881 | |||||||||
Total current liabilities | 755,389 | 437,627 | 414,340 | |||||||||
Long term debt | 5,592 | 308,700 | 300,000 | |||||||||
Income taxes payable | 212,389 | 192,842 | 96,099 | |||||||||
Deferred tax liabilities | 198,502 | 205,727 | 183,715 | |||||||||
Other liabilities | 27,797 | 22,143 | 22,771 | |||||||||
Total liabilities | 1,199,669 | 1,167,039 | 1,016,925 | |||||||||
Stockholders' equity: | ||||||||||||
Common stock | 293 | 9,125 | 296 | |||||||||
Retained earnings | 2,553,418 | 2,507,298 | 2,524,790 | |||||||||
Accumulated other comprehensive loss | (15,434 | ) | (13,225 | ) | (14,268 | ) | ||||||
Total stockholders' equity | 2,538,277 | 2,503,198 | 2,510,818 | |||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 3,737,946 | $ | 3,670,237 | $ | 3,527,743 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | June 25, 2011 | June 30, 2012 | June 25, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 110,634 | $ | 54,517 | $ | 125,593 | $ | 386,727 | $ | 489,009 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||
Stock-based compensation | 20,890 | 22,038 | 21,408 | 89,867 | 94,297 | ||||||||||||||||
Depreciation and amortization | 53,554 | 53,476 | 50,016 | 211,096 | 205,062 | ||||||||||||||||
Deferred taxes | 1,224 | (9,942 | ) | 20,484 | 30,759 | 140,084 | |||||||||||||||
In-process research and development | — | 1,600 | — | 1,600 | — | ||||||||||||||||
(Gain) Loss from sale of property, plant and equipment | (1,412 | ) | (6,487 | ) | (1,797 | ) | (7,648 | ) | 12,946 | ||||||||||||
Gain from discontinued operations | — | (45,372 | ) | — | (45,372 | ) | — | ||||||||||||||
Gain from sale of investments in privately-held companies | — | — | — | (1,811 | ) | — | |||||||||||||||
Tax shortfall related to stock-based compensation plans | 1,309 | 2,957 | 2,811 | 3,113 | 30,546 | ||||||||||||||||
Impairment of long-lived assets | 22,933 | 7,712 | — | 30,645 | — | ||||||||||||||||
Excess tax benefit related to stock-based compensation | (5,247 | ) | (5,172 | ) | (4,792 | ) | (17,482 | ) | (12,869 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Accounts receivable | (21,206 | ) | (50,026 | ) | 6,959 | (19,262 | ) | 43,256 | |||||||||||||
Inventories | (22,090 | ) | 12,412 | (2,974 | ) | (432 | ) | (29,435 | ) | ||||||||||||
Other current assets | (5,634 | ) | 2,332 | 16,031 | (16,757 | ) | 53,255 | ||||||||||||||
Accounts payable | 11,802 | 27,228 | (8,621 | ) | 25,515 | (4,746 | ) | ||||||||||||||
Income taxes payable | 20,329 | 98,321 | 2,538 | 134,967 | (45,318 | ) | |||||||||||||||
Deferred income on shipments to distributors | (2,449 | ) | (2,407 | ) | 1,310 | (10,601 | ) | 11,102 | |||||||||||||
Litigation Settlement | — | — | — | — | (173,000 | ) | |||||||||||||||
All other accrued liabilities | 5,457 | 33,312 | 17,308 | (38,202 | ) | 47,265 | |||||||||||||||
Net cash provided by operating activities | 190,094 | 196,499 | 246,274 | 756,722 | 861,454 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Payments for property, plant and equipment | (76,610 | ) | (70,053 | ) | (48,063 | ) | (264,348 | ) | (175,253 | ) | |||||||||||
Proceeds from sales of property, plant and equipment | 1,400 | 13,774 | 2,295 | 16,883 | 27,624 | ||||||||||||||||
Acquisition | (2,257 | ) | — | (7,811 | ) | (168,544 | ) | (80,918 | ) | ||||||||||||
Discontinued operations | — | 56,607 | — | 56,607 | — | ||||||||||||||||
Purchases of privately-held companies | (1,500 | ) | (1,980 | ) | — | (3,480 | ) | — | |||||||||||||
Purchases of available-for-sale securities | — | — | — | (25,108 | ) | (49,787 | ) | ||||||||||||||
Proceeds from sales of investments of privately-held companies | — | — | — | 3,225 | — | ||||||||||||||||
Net cash used in investing activities | (78,967 | ) | (1,652 | ) | (53,579 | ) | (384,765 | ) | (278,334 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Excess tax benefit related to stock-based compensation | 5,247 | 5,172 | 4,792 | 17,482 | 12,869 | ||||||||||||||||
Mortgage liability | — | — | — | — | (3,237 | ) | |||||||||||||||
Dividends paid | (64,408 | ) | (64,384 | ) | (62,077 | ) | (257,731 | ) | (249,145 | ) | |||||||||||
Repayment of notes payable | (400 | ) | — | — | (20,806 | ) | (1,422 | ) | |||||||||||||
Repurchase of common stock | (56,282 | ) | (28,970 | ) | (59,008 | ) | (246,412 | ) | (231,012 | ) | |||||||||||
Issuance of ESPP | 18,807 | — | 16,281 | 33,772 | 28,850 | ||||||||||||||||
Net issuance of restricted stock units | (6,929 | ) | (7,669 | ) | (7,781 | ) | (29,649 | ) | (28,839 | ) | |||||||||||
Proceeds from stock options exercised | 13,347 | 20,395 | 8,716 | 49,906 | 24,845 | ||||||||||||||||
Net cash used in financing activities | (90,618 | ) | (75,456 | ) | (99,077 | ) | (453,438 | ) | (447,091 | ) |
Net increase (decrease) in cash and cash equivalents | 20,509 | 119,391 | 93,618 | (81,481 | ) | 136,029 | |||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | 860,551 | 741,160 | 868,923 | 962,541 | 826,512 | ||||||||||||||||
End of period | $ | 881,060 | $ | 860,551 | $ | 962,541 | $ | 881,060 | $ | 962,541 | |||||||||||
Total cash, cash equivalents, and short-term investments | $ | 956,386 | $ | 935,956 | $ | 1,012,887 | $ | 956,386 | $ | 1,012,887 | |||||||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL EXPENSE ITEMS DISCLOSURES | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
June 30, 2012 | March 31, 2012 | June 25, 2011 | June 30, 2012 | June 25, 2011 | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special expense items: | ||||||||||||||||||||||
GAAP gross profit | $ | 371,989 | $ | 335,430 | $ | 390,825 | $ | 1,450,852 | $ | 1,529,964 | ||||||||||||
GAAP gross profit % | 61.5 | % | 58.7 | % | 62.4 | % | 60.4 | % | 61.9 | % | ||||||||||||
Special expense items: | ||||||||||||||||||||||
Intangible asset amortization (1) | 9,392 | 9,787 | 7,977 | 36,693 | 30,164 | |||||||||||||||||
Acquisition related inventory write up (2) | — | — | — | 1,801 | 5,677 | |||||||||||||||||
Total special expense items | 9,392 | 9,787 | 7,977 | 38,494 | 35,841 | |||||||||||||||||
GAAP gross profit excluding special expense items | $ | 381,381 | $ | 345,217 | $ | 398,802 | $ | 1,489,346 | $ | 1,565,805 | ||||||||||||
GAAP gross profit % excluding special expense items | 63.0 | % | 60.4 | % | 63.7 | % | 62.0 | % | 63.3 | % | ||||||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special expense items: | ||||||||||||||||||||||
GAAP operating expenses | $ | 235,968 | $ | 223,544 | $ | 212,903 | $ | 916,055 | $ | 856,925 | ||||||||||||
Special expense (income) items: | ||||||||||||||||||||||
Intangible asset amortization (1) | 4,049 | 4,029 | 4,200 | 16,737 | 18,752 | |||||||||||||||||
Impairment of long-lived assets (3) | 22,383 | 7,712 | — | 30,095 | — | |||||||||||||||||
Severance and restructuring | 18 | 228 | (423 | ) | 6,785 | 1,247 | ||||||||||||||||
Other operating (income) expenses, net (4) | (4,469 | ) | (2,511 | ) | (1,984 | ) | (11,214 | ) | 19,124 | |||||||||||||
Total special expense items | 21,981 | 9,458 | 1,793 | 42,403 | 39,123 | |||||||||||||||||
GAAP operating expenses excluding special expense items | $ | 213,987 | $ | 214,086 | $ | 211,110 | $ | 873,652 | $ | 817,802 | ||||||||||||
Reconciliation of GAAP net income to GAAP net income excluding special expense items: | ||||||||||||||||||||||
GAAP net income | $ | 110,634 | $ | 54,517 | $ | 125,593 | $ | 386,727 | $ | 489,009 | ||||||||||||
Special expense (income) items: | ||||||||||||||||||||||
Intangible asset amortization (1) | 13,441 | 13,816 | 12,177 | 53,430 | 48,916 | |||||||||||||||||
Acquisition related inventory write up (2) | — | — | — | 1,801 | 5,677 | |||||||||||||||||
Impairment of long-lived assets (3) | 22,383 | 7,712 | — | 30,095 | — | |||||||||||||||||
Severance and restructuring | 18 | 228 | (423 | ) | 6,785 | 1,247 | ||||||||||||||||
Other operating (income) expenses, net (4) | (4,469 | ) | (2,511 | ) | (1,984 | ) | (11,214 | ) | 19,124 | |||||||||||||
Interest and other expense (income), net (5) | 550 | — | — | (1,226 | ) | — | ||||||||||||||||
Pre-tax total special expense items | 31,923 | 19,245 | 9,770 | 79,671 | 74,964 | |||||||||||||||||
Tax effect of special items | (10,613 | ) | (5,445 | ) | (3,315 | ) | (25,579 | ) | (26,481 | ) | ||||||||||||
Reversal of tax reserves (6) | — | (2,272 | ) | (1,624 | ) | (2,272 | ) | (38,947 | ) | |||||||||||||
International restructuring (7) | 2,751 | 65,293 | 6,791 | 65,389 | 21,801 | |||||||||||||||||
Discontinued operations, net of tax (8) | — | (31,809 | ) | — | (31,809 | ) | — | |||||||||||||||
GAAP net income excluding special expense items | $ | 134,695 | $ | 99,529 | $ | 137,215 | $ | 472,127 | $ | 520,346 | ||||||||||||
GAAP net income per share excluding special expense items: | ||||||||||||||||||||||
Basic | $ | 0.46 | $ | 0.34 | $ | 0.46 | $ | 1.61 | $ | 1.75 | ||||||||||||
Diluted | $ | 0.45 | $ | 0.33 | $ | 0.45 | $ | 1.57 | $ | 1.72 | ||||||||||||
Shares used in the calculation of earnings per share excluding special expense items: | ||||||||||||||||||||||
Basic | 292,757 | 292,276 | 295,751 | 292,810 | 296,755 | |||||||||||||||||
Diluted | 299,793 | 300,221 | 303,944 | 300,002 | 303,377 | |||||||||||||||||
(1) Includes intangible asset amortization related to acquisitions. | ||||||||||||||||||||||
(2) Includes expense related to fair value write up of inventory acquired as part of acquisitions. |
(3) Includes impairment charges relating to land and buildings held for sale, wafer fab and end of line manufacturing equipment. | ||||||||||||||||||||||
(4) Other operating (income) expenses, net are primarily for loss (gain) on sale of land and buildings, contingent consideration adjustments related to certain acquisitions, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off. | ||||||||||||||||||||||
(5) Includes gain on sale and impairment of privately-held companies. | ||||||||||||||||||||||
(6) Includes reversal of tax reserves related to audit completion and expiration of statute of limitations. | ||||||||||||||||||||||
(7) Includes impact due to implementation of international restructuring. | ||||||||||||||||||||||
(8) Includes gain on sale, net of tax relating to certain businesses divested. | ||||||||||||||||||||||