CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares which are reflected in thousands and per share amounts)
Years ended

Net sales
Cost of sales
Gross margin
Operating expenses:
Research and development
Selling, general and administrative
Total operating expenses

September 29, 2012

September 24, 2011

September 25, 2010

156,508
87,846
68,662

65,225
39,541
25,684

3,381
10,040
13,421

2,429
7,599
10,028

1,782
5,517
7,299

33,790
415
34,205
8,283
25,922

18,385
155
18,540
4,527
14,013

$
$

28.05
27.68

$
$

15.41
15.15

Operating income
Other income/(expense), net
Income before provision for income taxes
Provision for income taxes
Net income

55,241
522
55,763
14,030
41,733

Earnings per share:

Basic
Diluted

$
$

44.64
44.15

Shares used in computing earnings per share:

Basic
Diluted

108,249
64,431
43,818

934,818
945,355

924,258
936,645

909,461
924,712

Cash dividends declared per common share

0.00
$

2.65

0.00

CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands)
September 29, 2012

September 24, 2011

ASSETS:
Current assets:
Cash and cash equivalents
Short-term marketable securities
Accounts receivable, less allowances of $98 and $53, respectively
Inventories
Deferred tax assets
Vendor non-trade receivables
Other current assets
Total current assets
Long-term marketable securities
Property, plant and equipment, net
Goodwill
Acquired intangible assets, net
Other assets
Total assets

10,746
18,383
10,930
791
2,583
7,762
6,458
57,653
92,122
15,452
1,135
4,224
5,478
176,064

9,815
16,137
5,369
776
2,014
6,348
4,529
44,988
55,618
7,777
896
3,536
3,556
116,371

LIABILITIES AND SHAREHOLDERS EQUITY:

Current liabilities:
Accounts payable
Accrued expenses
Deferred revenue
Total current liabilities
Deferred revenue - non-current
Other non-current liabilities
Total liabilities

21,175
11,414
5,953
38,542
2,648
16,664
57,854

14,632
9,247
4,091
27,970
1,686
10,100
39,756

Commitments and contingencies

Shareholders equity:
Common stock, no par value; 1,800,000 shares authorized; 939,208 and 929,277 shares issued
and outstanding, respectively
Retained earnings
Accumulated other comprehensive income

16,422
101,289
499

13,331
62,841
443

Total shareholders equity

Total liabilities and shareholders equity

118,210
176,064

76,615
116,371

CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY

(In millions, except number of shares which are reflected in thousands)
Common Stock

Total
Shareholders
Equity

Amount

Retained
Earnings

899,806

$ 8,210

$ 23,353

0
0
0
0

0
0
0
0

14,013
0
0
0

0
7
123
(253)

0
16,164
0
915,970

876
703
879
10,668

0
(197)
0
37,169

0
0
0
(46)

0
0
0
0

0
0
0
0

25,922
0
0
0

0
(12)
(41)
542

0
13,307
0
929,277

1,168
561
934
13,331

0
(250)
0
62,841

0
0
0
443

25,922
(12)
(41)
542
26,411
1,168
311
934
76,615

0
0
0
0

0
0
0
0

41,733
0
0
0

0
(15)
601
(530)

41,733
(15)
601
(530)

Shares

Balances as of September 26, 2009

Components of comprehensive income:
Net income
Change in foreign currency translation
Change in unrealized gains/losses on marketable securities, net of tax
Change in unrecognized gains/losses on derivative instruments, net of tax
Total comprehensive income
Share-based compensation
Common stock issued under stock plans, net of shares withheld for employee taxes
Tax benefit from equity awards, including transfer pricing adjustments
Balances as of September 25, 2010
Components of comprehensive income:
Net income
Change in foreign currency translation
Change in unrealized gains/losses on marketable securities, net of tax
Change in unrecognized gains/losses on derivative instruments, net of tax
Total comprehensive income
Share-based compensation
Common stock issued under stock plans, net of shares withheld for employee taxes
Tax benefit from equity awards, including transfer pricing adjustments
Balances as of September 24, 2011
Components of comprehensive income:
Net income
Change in foreign currency translation
Change in unrealized gains/losses on marketable securities, net of tax
Change in unrecognized gains/losses on derivative instruments, net of tax

Accumulated
Other
Comprehensive
Income/
(Loss)

77

$ 31,640
14,013
7
123
(253)
13,890
876
506
879
47,791

Total comprehensive income

Dividends and dividend equivalent rights declared
Share-based compensation
Common stock issued under stock plans, net of shares withheld for employee taxes
Tax benefit from equity awards, including transfer pricing adjustments
Balances as of September 29, 2012

0
0
9,931
0
939,208

0
1,740
200
1,151
$ 16,422

(2,523)
0
(762)
0
$101,289

41,789
(2,523)
1,740
(562)
1,151
$118,210

0
0
0
0
499

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Cash and cash equivalents, beginning of the year

Operating activities:
Net income
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization
Share-based compensation expense
Deferred income tax expense
Changes in operating assets and liabilities:
Accounts receivable, net
Inventories
Vendor non-trade receivables
Other current and non-current assets
Accounts payable
Deferred revenue
Other current and non-current liabilities
Cash generated by operating activities
Investing activities:
Purchases of marketable securities
Proceeds from maturities of marketable securities
Proceeds from sales of marketable securities
Payments made in connection with business acquisitions, net of cash acquired
Payments for acquisition of property, plant and equipment
Payments for acquisition of intangible assets
Other
Cash used in investing activities

September 29,
2012

Years ended
September 24,
2011

September 25,
2010

9,815

11,261

5,263

41,733

25,922

14,013

3,277
1,740
4,405

1,814
1,168
2,868

1,027
879
1,440

(5,551)
(15)
(1,414)
(3,162)
4,467
2,824
2,552
50,856

143
275
(1,934)
(1,391)
2,515
1,654
4,495
37,529

(2,142)
(596)
(2,718)
(1,610)
6,307
1,217
778
18,595

(151,232)
13,035
99,770
(350)
(8,295)
(1,107)
(48)
(48,227)

(102,317)
20,437
49,416
(244)
(4,260)
(3,192)
(259)
(40,419)

(57,793)
24,930
21,788
(638)
(2,005)
(116)
(20)
(13,854)

Financing activities:
Proceeds from issuance of common stock
Excess tax benefits from equity awards
Dividends and dividend equivalent rights paid
Taxes paid related to net share settlement of equity awards
Cash (used in)/generated by financing activities
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents, end of the year
Supplemental cash flow disclosure:
Cash paid for income taxes, net

665
1,351
(2,488)
(1,226)
(1,698)

831
1,133
0
(520)
1,444

912
751
0
(406)
1,257

931
10,746

(1,446)
9,815

5,998
11,261

7,682

3,338

2,697