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Table of Contents
statutory tax rate reductions and a favorable audit settlement, offset by the recognition of transfer pricing exposures
and a change to estimates on existing tax positions. In addition, there was a negative impact on the tax rate in the
prior year due to an additional tax provision for transfer pricing exposures in Europe, which effectively increased the
prior year’s tax rate.
Net Income (Loss)
As a result of the factors described in the preceding sections of this MD&A, the Company’s net loss was
$1.12 billion, or $7.44 per share, in fiscal 2009 as compared with net income of $499.1 million, or $3.27 per share on
a diluted basis, in fiscal 2008 and net income of $393.1 million, or $2.63 per share on a diluted basis, in fiscal 2007.
Fiscal 2009, 2008 and 2007 results were impacted by certain items as presented in the following tables:
Critical Accounting Policies
The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. The
preparation of these consolidated financial statements requires the Company to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period. These estimates
and assumptions are based upon the Company’s continuous evaluation of historical results and anticipated future
events. Actual results may differ from these estimates under different assumptions or conditions.
The Securities and Exchange Commission defines critical accounting polices as those that are, in management’s
view, most important to the portrayal of the Company’s financial condition and results of operations and that
26
Year Ended June 27, 2009
Operating
Pre-tax
Net
Income (Loss)
Income (Loss)
Income (Loss)
EPS
($ in thousands, except per share data)
Impairment charges
$
(1,411,127
)
$
(1,411,127
)
$
(1,376,983
)
$
(9.13
)
Restructuring, integration and other charges
(99,342
)
(99,342
)
(65,310
)
(0.43
)
Gain on sale of assets
—
14,318
8,727
0.06
Net reduction in tax reserves
—
—
21,672
0.14
Total
$
(1,510,469
)
$
(1,496,151
)
$
(1,411,894
)
$
(9.36
)
Year Ended June 28, 2008
Operating
Pre
-
tax
Net
Diluted
Income (Loss)
Income (Loss)
Income Loss)
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
Debt extinguishment costs
—
—
13,897
0.09
Total
$
(38,942
)
$
10,961
$
14,672
$
0.09
Year Ended June 30, 2007
Operating
Pre
-
tax
Net
Diluted
Income (Loss)
Income (Loss)
Income (Loss)
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
)