The following tables reconcile the specific items excluded from GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:
Net Income Reconciliation Three Months Ended -------------------------- March 31, April 2, 2012 2011 ------------ ------------ (unaudited) (in thousands) Net income on a GAAP basis $ 31,104 $ 6,323 Amortization of acquired intangibles 6,685 6,655 Stock-based compensation expense 11,525 9,357 Non-qualified deferred compensation expenses 1,798 1,762 Restructuring and other charges (credits) (51) (41) Shareholder litigation costs 46 68 Integration and acquisition-related costs 448 474 Amortization of debt discount 5,089 6,519 Other income or expense related to investments and non-qualified deferred compensation plan assets* (1,949) (4,391) Income tax effect of non-GAAP adjustments (8,195) (3,468) ------------ ------------ Net income on a non-GAAP basis $ 46,500 $ 23,258 ============ ============ * Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in Other income, net. Diluted Net Income per Share Reconciliation Three Months Ended -------------------------- March 31, April 2, 2012 2011 ------------ ------------ (unaudited) (in thousands, except per share data) Diluted net income per share on a GAAP basis $ 0.11 $ 0.02 Amortization of acquired intangibles 0.03 0.03 Stock-based compensation expense 0.04 0.04 Non-qualified deferred compensation expenses 0.01 0.01 Restructuring and other charges (credits) - - Shareholder litigation costs - - Integration and acquisition-related costs - - Amortization of debt discount 0.02 0.02 Other income or expense related to investments and non-qualified deferred compensation plan assets* (0.01) (0.02) Income tax effect of non-GAAP adjustments (0.03) (0.01) ------------ ------------ Diluted net income per share on a non-GAAP basis $ 0.17 $ 0.09 ============ ============ Shares used in calculation of diluted net income per share -- GAAP** 277,733 268,578 Shares used in calculation of diluted net income per share -- non-GAAP** 277,733 268,578 * Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in Other income, net. ** Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss.