Financial Statements
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| December 25, 2011 |
June 26, 2011 |
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| (unaudited) | (1) | |||||||
| ASSETS | ||||||||
Cash and cash equivalents |
$ | 1,506,928 | $ | 1,492,132 | ||||
Short-term investments |
712,856 | 630,115 | ||||||
Accounts receivable, less allowance for doubtful accounts of $4,690 as of December 25, 2011 and $4,720 as of June 26, 2011 |
462,243 | 590,568 | ||||||
Inventories |
373,130 | 396,607 | ||||||
Deferred income taxes |
78,479 | 78,435 | ||||||
Prepaid expenses and other current assets |
79,215 | 85,408 | ||||||
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Total current assets |
3,212,851 | 3,273,265 | ||||||
Property and equipment, net |
272,409 | 270,458 | ||||||
Restricted cash and investments |
165,217 | 165,256 | ||||||
Deferred income taxes |
4,184 | 3,892 | ||||||
Goodwill |
169,182 | 169,182 | ||||||
Intangible assets, net |
38,386 | 47,434 | ||||||
Other assets |
115,918 | 124,380 | ||||||
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Total assets |
$ | 3,978,147 | $ | 4,053,867 | ||||
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| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Trade accounts payable |
$ | 108,118 | $ | 163,541 | ||||
Accrued expenses and other current liabilities |
365,405 | 358,756 | ||||||
Deferred profit |
117,265 | 153,680 | ||||||
Current portion of long-term debt, convertible notes, and capital leases |
2,817 | 4,782 | ||||||
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Total current liabilities |
593,605 | 680,759 | ||||||
Long-term debt, convertible notes, and capital leases |
749,078 | 738,488 | ||||||
Income taxes payable |
115,616 | 113,582 | ||||||
Other long-term liabilities |
57,104 | 51,193 | ||||||
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Total liabilities |
1,515,403 | 1,584,022 | ||||||
Commitments and contingencies |
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Stockholders' equity: |
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Preferred stock, at par value of $0.001 per share; authorized - 5,000 shares; none outstanding |
— | — | ||||||
Common stock, at par value of $0.001 per share; authorized - 400,000 shares; issued and outstanding - 119,540 shares as of December 25, 2011 and 123,579 shares as of June 26, 2011 |
120 | 124 | ||||||
Additional paid-in capital |
1,651,015 | 1,531,465 | ||||||
Treasury stock, at cost; 45,728 shares as of December 25, 2011 and 40,995 shares as of June 26, 2011 |
(1,950,397 | ) | (1,761,591 | ) | ||||
Accumulated other comprehensive income (loss) |
(33,130 | ) | 9,761 | |||||
Retained earnings |
2,795,136 | 2,690,086 | ||||||
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Total stockholders' equity |
2,462,744 | 2,469,845 | ||||||
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Total liabilities and stockholders' equity |
$ | 3,978,147 | $ | 4,053,867 | ||||
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| (1) | Derived from audited financial statements |
See Notes to Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| December 25, 2011 |
December 26, 2010 |
December 25, 2011 |
December 26, 2010 |
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Revenue |
$ | 583,981 | $ | 870,714 | $ | 1,264,417 | $ | 1,676,588 | ||||||||
Cost of goods sold |
350,014 | 463,281 | 746,567 | 891,829 | ||||||||||||
Cost of goods sold - restructuring and impairments |
(859 | ) | — | (859 | ) | — | ||||||||||
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Total costs of goods sold |
349,155 | 463,281 | 745,708 | 891,829 | ||||||||||||
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Gross margin |
234,826 | 407,433 | 518,709 | 784,759 | ||||||||||||
Research and development |
104,024 | 90,477 | 206,583 | 176,830 | ||||||||||||
Selling, general and administrative |
83,256 | 75,852 | 163,456 | 147,994 | ||||||||||||
Restructuring and impairments |
— | — | 1,725 | (5,163 | ) | |||||||||||
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Total operating expenses |
187,280 | 166,329 | 371,764 | 319,661 | ||||||||||||
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Operating income |
47,546 | 241,104 | 146,945 | 465,098 | ||||||||||||
Other income (expense), net |
(7,785 | ) | 1,038 | (19,858 | ) | 59 | ||||||||||
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Income before income taxes |
39,761 | 242,142 | 127,087 | 465,157 | ||||||||||||
Income tax expense |
6,549 | 20,286 | 22,037 | 49,577 | ||||||||||||
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Net income |
$ | 33,212 | $ | 221,856 | $ | 105,050 | $ | 415,580 | ||||||||
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Net income per share: |
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Basic net income per share |
$ | 0.28 | $ | 1.80 | $ | 0.87 | $ | 3.37 | ||||||||
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Diluted net income per share |
$ | 0.27 | $ | 1.78 | $ | 0.86 | $ | 3.32 | ||||||||
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Number of shares used in per share calculations: |
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Basic |
119,739 | 123,101 | 121,435 | 123,384 | ||||||||||||
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Diluted |
120,873 | 124,786 | 122,382 | 124,999 | ||||||||||||
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See Notes to Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Six Months Ended | ||||||||
| December 25, 2011 |
December 26, 2010 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net income |
$ | 105,050 | $ | 415,580 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
43,732 | 36,611 | ||||||
Deferred income taxes |
(633 | ) | (3,822 | ) | ||||
Restructuring and impairment charges |
866 | (5,163 | ) | |||||
Impairment of investment |
1,724 | — | ||||||
Equity-based compensation expense |
35,968 | 25,768 | ||||||
Income tax benefit on equity-based compensation plans |
1,129 | 4,165 | ||||||
Excess tax benefit on equity-based compensation plans |
(2,155 | ) | (3,228 | ) | ||||
Amortization of convertible note discount |
13,264 | — | ||||||
Loss on equity method investment |
202 | — | ||||||
Other, net |
2,304 | (3,564 | ) | |||||
Changes in operating assets and liabilities |
54,465 | (25,020 | ) | |||||
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Net cash provided by operating activities |
255,916 | 441,327 | ||||||
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Capital expenditures and intangible assets |
(42,414 | ) | (57,155 | ) | ||||
Purchases of available-for-sale securities |
(234,576 | ) | (80,916 | ) | ||||
Sales and maturities of available-for-sale securities |
145,123 | 55,250 | ||||||
Purchase of equity method investment |
(10,740 | ) | — | |||||
Receipt of loan payments |
8,375 | — | ||||||
Proceeds from sale of assets |
2,677 | 1,544 | ||||||
Transfer of restricted cash and investments |
20 | (10 | ) | |||||
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Net cash used for investing activities |
(131,535 | ) | (81,287 | ) | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Principal payments on long-term debt and capital lease obligations |
(3,140 | ) | (3,411 | ) | ||||
Excess tax benefit on equity-based compensation plans |
2,155 | 3,228 | ||||||
Net cash received in settlement (paid in advance for) stock repurchase contracts |
(23,995 | ) | (50,000 | ) | ||||
Treasury stock purchases |
(92,695 | ) | (148,946 | ) | ||||
Reissuances of treasury stock related to employee stock purchase plan |
8,858 | 7,155 | ||||||
Proceeds from issuance of common stock |
1,475 | 4,242 | ||||||
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Net cash used for financing activities |
(107,342 | ) | (187,732 | ) | ||||
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Effect of exchange rate changes on cash |
(2,243 | ) | 10,985 | |||||
Net increase (decrease) in cash and cash equivalents |
14,796 | 183,293 | ||||||
Cash and cash equivalents at beginning of period |
1,492,132 | 545,767 | ||||||
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Cash and cash equivalents at end of period |
$ | 1,506,928 | $ | 729,060 | ||||
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See Notes to Condensed Consolidated Financial Statements
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