Annual report pursuant to Section 13 and 15(d)

Supplementary Financial Information (unaudited)

v3.8.0.1
Supplementary Financial Information (unaudited)
 12 Months Ended
Dec. 30, 2017
Quarterly Financial Data [Abstract]  
Supplementary Financial Information (unaudited)
Supplementary Financial Information (unaudited)
The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. All quarters of 2017 and 2016 except the fourth quarter of 2016 consisted of 13 weeks; the fourth quarter of 2016 consisted of 14 weeks.
 
 
(In millions, except per share amounts)
  
2017
 
2016
  
Dec. 30
 
Sep. 30
 
July 1
 
April 1
 
Dec. 31
 
Sep. 24
 
Jun. 25
 
Mar. 26
Net revenue
$
1,480

 
$
1,643

 
$
1,222

 
$
984

 
$
1,106

 
$
1,307

 
$
1,027

 
$
832

Cost of sales(1)
965

 
1,070

 
818

 
653

 
755

 
1,248

 
708

 
563

Gross margin
515

 
573

 
404

 
331

 
351

 
59

 
319

 
269

Research and development
300

 
315

 
279

 
266

 
264

 
259

 
243

 
242

Marketing, general and administrative
133

 
132

 
125

 
121

 
121

 
117

 
117

 
105

Restructuring and other special charges (reversals), net
—

 
—

 
—

 
—

 
—

 
—

 
(7
)
 
(3
)
Licensing gain
—

 
—

 
(25
)
 
(27
)
 
(31
)
 
(24
)
 
(26
)
 
(7
)
Operating income (loss)
82

 
126

 
25

 
(29
)
 
(3
)
 
(293
)
 
(8
)
 
(68
)
Interest expense
(31
)

(31
)
 
(32
)
 
(32
)
 
(34
)

(41
)
 
(41
)
 
(40
)
Other income (expense), net(2)
2

 
(3
)
 
(3
)
 
(5
)
 
(7
)
 
(63
)
 
150

 
—

Income (loss) before income taxes
53

 
92

 
(10
)
 
(66
)
 
(44
)
 
(397
)
 
101

 
(108
)
Provision for income taxes
(8
)
 
19

 
3

 
5

 
5

 
4

 
29

 
1

Equity loss in investee
—

 
(2
)
 
(3
)
 
(2
)
 
(2
)
 
(5
)
 
(3
)
 
—

Net income (loss)
61

 
71

 
(16
)
 
(73
)
 
(51
)
 
(406
)
 
69

 
(109
)
Earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.06

 
$
0.07

 
$
(0.02
)
 
$
(0.08
)
 
$
(0.06
)
 
$
(0.50
)
 
$
0.09

 
$
(0.14
)
Diluted
$
0.06

 
$
0.07

 
$
(0.02
)
 
$
(0.08
)
 
$
(0.06
)
 
$
(0.50
)
 
$
0.08

 
$
(0.14
)
Shares used in per share calculation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
965

 
957

 
945

 
939

 
931

 
815

 
794

 
793

Diluted
1,037

 
1,042

 
945

 
939

 
931

 
815

 
821

 
793



(1) 
During the third quarter of 2016, the Company recorded a charge of $340 million, consisting of the $100 million payment under the Sixth Amendment and the $240 million value of the warrant under the Warrant Agreement issued in consideration of the Sixth Amendment.
(2) 
The Company recorded a pre-tax gain of $150 million on the sale of its 85% equity interest in ATMP JV during the second quarter of 2016. During the third quarter of 2016, as a result of certain purchase price adjustments, the Company recognized a charge of $4 million. During the fourth quarter of 2017, the Company recorded a $3 million pre-tax gain for final settlement related to the sale of 85% of the equity interest in ATMP facilities.