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Table of Contents
$2.63 per share on a diluted basis, in fiscal 2007 and net income of $204.5 million, or $1.39 per share on a diluted
basis, in fiscal 2006. Fiscal 2008 results were positively impacted by a total of $14.7 million after tax, or $0.09 per
share on a diluted basis, as presented in the following table.
In comparison with fiscal 2008, the fiscal 2007 results were negatively impacted by a total of $20.0 million after
tax, or $0.13 per share on a diluted basis, as detailed in the following table.
In comparison with fiscal 2007, the fiscal 2006 results were negatively impacted by a total of $70.6 million after
tax, or $0.48 per share on a diluted basis, as detailed in the following table.
Critical Accounting Policies
The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. The
preparation of these consolidated financial statements requires the Company to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period. These estimates
and assumptions are based upon the Company’s continuous evaluation of historical results and anticipated future
events. Actual results may differ from these estimates under different assumptions or conditions.
The Securities and Exchange Commission defines critical accounting polices as those that are, in management’s
view, most important to the portrayal of the Company’s financial condition and results of operations and that require
significant judgments and estimates. Management believes the Company’
s most critical accounting policies relate to:
Valuation of Receivables
The Company maintains an allowance for doubtful accounts for estimated losses resulting from customer
defaults. Bad debt reserves are recorded based upon historic default averages as well as the Company’s regular
assessment of the financial condition of its customers. Therefore, if collection experience or the financial condition
28
Year Ended June 28, 2008
Operating
Pre
-
tax
Net
Diluted
Income
Income
Income
EPS
($ in thousands, except per share data)
Restructuring, integration and other charges
$
(38,942
)
$
(38,942
)
$
(31,469
)
$
(0.21
)
Gain on sale of assets
—
49,903
32,244
0.21
Net reduction in tax reserves
—
13,897
0.09
Total
$
(38,942
)
$
10,961
$
14,672
$
0.09
Year Ended June 30, 2007
Operating
Pre
-
tax
Net
Diluted
Income
Income
Income
EPS
($ in thousands, except per share data)
Restructuring, integration and other charges
$
(7,353
)
$
(7,353
)
$
(5,289
)
$
(0.03
)
Gain on sale of assets
—
3,000
1,814
0.01
Debt extinguishment costs
—
(
27,358
)
(16,538
)
(0.11
)
Total
$
(7,353
)
$
(31,711
)
$
(20,013
)
$
(0.13
)
Year Ended July 1, 2006
Gross
Operating
Pre
-
tax
Net
Diluted
Profit
Income
Income
Income
EPS
($ in thousands, except per share data)
Restructuring, integration and other charges
$
(8,977
)
$
(69,960
)
$
(69,960
)
$
(49,870
)
$
(0.34
)
Loss on sale of assets, net
(
2,601
)
(7,074
)
(0.05
)
Debt extinguishment costs
(
22,585
)
(13,653
)
(0.09
)
Total
$
(8,977
)
$
(69,960
)
$
(95,146
)
$
(70,597
)
$
(0.48
)