FAS123R -- Share-Based Payment 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.
LINEAR TECHNOLOGY CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, July 2, 2006 2006 (unaudited) (audited) ASSETS Current assets: Cash, cash equivalents and short-term investments $1,783,558 $1,819,587 Accounts receivable, net of allowance for doubtful accounts of $1,797 ($1,808 at July 2, 2006) 151,093 154,297 Inventories 45,365 39,031 Deferred tax assets and Other current assets 68,659 64,221 Total current assets 2,048,675 2,077,136 Property, plant & equipment, net 260,800 247,969 Other noncurrent assets 65,891 65,790 Total assets $2,375,366 $2,390,895 LIABILITIES & STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $15,216 $14,574 Accrued income taxes, payroll & other accrued liabilities 157,159 174,239 Deferred income on shipments to distributors 41,864 48,013 Total current liabilities 214,239 236,826 Deferred tax and other long-term liabilities 46,913 49,571 Stockholders' equity: Common stock 1,107,567 1,063,446 Retained earnings 1,008,200 1,046,137 Accumulated other comprehensive income (1,553) (5,085) Total stockholders' equity 2,114,214 2,104,498 $2,375,366 $2,390,895
Web site: http://www.linear.com/