Diluted Net Income per Share Reconciliation

Years Ended

December 28, 2013

December 29, 2012

(unaudited)

(in thousands, except per share data)

Diluted net income per share on a GAAP basis

$

0.56

$

1.57

Amortization and sale of acquired intangibles

0.15

0.10

Stock-based compensation expense

0.23

0.17

Non-qualified deferred compensation expenses

0.01

0.02

Restructuring and other charges

0.06

—

Shareholder litigation costs

—

—

Integration and acquisition-related costs

0.11

0.03

Executive severance costs

—

—

Amortization of debt discount

0.08

0.07

Other income or expense related to investments and non-qualified deferred compensation plan assets*

(0.02)

(0.02)

Income tax benefit of valuation allowance release

—

(0.78)

Income tax benefit of State of California settlement

—

(0.13)

Income tax benefit due to a release of an uncertain tax position

(0.11)

—

Acquisition-related income tax benefit

—

(0.05)

Income tax effect of non-GAAP adjustments

(0.21)

(0.21)

Diluted net income per share on a non-GAAP basis

$

0.86

$

0.77

Shares used in calculation of diluted net income per share — GAAP**

294,564

280,667

Shares used in calculation of diluted net income per share — non-GAAP**

294,564

280,667

*

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 or expense.

**

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.