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Table of Contents
Net Income (Loss)
As a result of the factors described in the preceding sections of this MD&A, the Company’
s net income was $669.1 million, or
$4.34 per share on a diluted basis, as compared with net income of $410.4 million, or $2.68 per share on a diluted basis, in fiscal 2010
and a net loss of $1.13 billion, or $7.49 per share, in fiscal 2009. Fiscal 2011, 2010 and 2009 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 policies 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:
26
Year Ended July 2, 2011
Operating
Pre
-
tax
Net
Diluted
Income (Loss)
Income (Loss)
Income (Loss)
EPS
(Thousands, except per share data)
Restructuring, integration and other charges
$
(77,176
)
$
(77,176
)
$
(56,169
)
$
(0.36
)
Gain on bargain purchase and other
—
22,715
25,720
0.17
Release of tax valuation allowance, net of tax reserves
adjustments
—
—
32,901
0.21
Total
$
(77,176
)
$
(54,461
)
$
2,452
$
0.02
Year Ended July 3, 2010
Operating
Pre-tax
Net
Diluted
Income (Loss)
Income (Loss)
Income (Loss)
EPS *
(Thousands, except per share data)
Restructuring, integration and other charges
$
(25,419
)
$
(25,419
)
$
(18,789
)
$
(0.12
)
Gain on sale of assets
—
8,751
5,370
0.03
Net increase in tax reserves
—
—
(
842
)
(0.01
)
Total
$
(25,419
)
$
(16,668
)
$
(14,261
)
$
(0.09
)
*
EPS does not foot due to rounding.
Year Ended June 27, 2009
Operating
Pre-tax
Net
Income (Loss)
Income (Loss)
Income (Loss)
EPS
(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
)
Retrospective application of accounting standard
291
(11,894
)
(7,250
)
(0.05
)
Gain on sale of assets
—
14,318
8,727
0.06
Net reduction in tax reserves
—
—
21,672
0.14
Total
$
(1,510,178
)
$
(1,508,045
)
$
(1,419,144
)
$
(9.41
)