(1) Excludes 2,010 and 1,929 shares for the three and six months ended January 1, 2006, respectively, to conform diluted outstanding shares calculated under FAS123R to diluted shares calculated under prior accounting standards.
FAS123R - Stock Based Compensation became effective and was adopted by the Company during the quarter ended October 2, 2005. FAS123R requires the Company to estimate the cost of all forms of stock based compensation, including employee stock options, and to record a commensurate expense in the income statement. To supplement our consolidated financial statements presented in accordance with GAAP, we have shown above a non-GAAP (pro forma) presentation of the Company's earnings per share, which is adjusted to reflect the GAAP results to exclude all stock based compensation. This non-GAAP presentation of earnings per share is provided to enhance the user's overall understanding of the Company's historical financial performance and comparability between periods. We believe the non-GAAP results provide useful information to investors by excluding stock based compensation particularly during this transitional period when many companies have not yet adopted the provisions of FAS123R.
LINEAR TECHNOLOGY CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands) January 1, July 3, 2006 2005 (unaudited) (audited) ASSETS Current assets: Cash, cash equivalents and short-term investments $1,841,653 $1,790,912 Accounts receivable, net of allowance for doubtful accounts of $1,808 ($1,713 at July 3, 2005) 128,336 125,864 Inventories 37,098 34,328 Deferred tax assets and other current assets 70,747 56,205 Total current assets 2,077,834 2,007,309 Property, plant & equipment, net 243,669 221,028 Other non current assets 50,369 57,897 Total assets $2,371,872 $2,286,234 January 1, July 3, 2006 2005 (unaudited) (audited) LIABILITIES & STOCKHOLDERS ' EQUITY Current liabilities: Accounts payable $11,690 $11,800 Accrued income taxes, payroll & other accrued liabilities 161,018 152,231 Deferred income on shipments to distributors 43,305 43,708 Total current liabilities 216,013 207,739 Deferred tax and other long-term liabilities 69,337 71,461 Stockholders' equity: Common stock 977,816 926,763 Retained earnings 1,113,544 1,083,110 Accumulated other comprehensive income (4,838) (2,839) Total stockholders' equity 2,086,522 2,007,034 $2,371,872 $2,286,234