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<div> <a name= "_AUC82f34550db524529affa8d911456cd5e"> Note 7.  Litigation</a>   For a discussion of our pending tax litigation with the Internal Revenue Service relating to the 2000 and 2001 tax years of Veritas, see Note 11.   On July 7, 2004, a purported class action complaint entitled Paul Kuck, et al. v. Veritas Software Corporation, et al. was filed in the United States District Court for the District of Delaware. The lawsuit alleges violations of federal securities laws in connection with Veritas’ announcement on July 6, 2004 that it expected results of operations for the fiscal quarter ended June 30, 2004 to fall below earlier estimates. The complaint generally seeks an unspecified amount of damages. Subsequently, additional purported class action complaints have been filed in Delaware federal court, and, on March 3, 2005, the Court entered an order consolidating these actions and appointing lead plaintiffs and counsel. A consolidated amended complaint (“CAC”), was filed on May 27, 2005, expanding the class period from April 23, 2004 through July 6, 2004. The CAC also named another officer as a defendant and added allegations that Veritas and the named officers made false or misleading statements in press releases and SEC filings regarding the company’s financial results, which allegedly contained revenue recognized from contracts that were unsigned or lacked essential terms. The defendants to this matter filed a motion to dismiss the CAC in July 2005; the motion was denied in May 2006. In April 2008, the parties filed a stipulation of settlement. On July 31, 2008, the Court held a final approval hearing and, on August 5, 2008, the Court entered an order approving the settlement. An objector to the fees portion of the settlement has lodged an appeal. In fiscal 2008, we recorded an accrual in the amount of $21.5 million for this matter and, pursuant to the terms of the settlement, we established a settlement fund of $21.5 million on May 1, 2008.   We are also involved in a number of other judicial and administrative proceedings that are incidental to our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our financial condition or results of operations. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUCe33b26be48bd418696f875346bb1089b"> Note 4.  Accounting for Convertible Debt Instruments</a>   As of April 4, 2009, we adopted FSP APB No. 14-1, which requires issuers of certain types of convertible notes to separately account for the liability and equity components of such convertible notes in a manner that reflects the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. FSP APB No. 14-1 applies to the 0.75% Convertible Senior Notes due June 15, 2011 and the 1.00% Convertible Senior Notes due June 15, 2013, collectively referred to as the Senior Notes. Prior to the adoption of FSP APB No. 14-1, the liability of the Senior Notes was carried at its principal value and only the contractual interest expense was recognized in our Condensed Consolidated Statements of Operations. Because FSP APB No. 14-1 requires retrospective adoption, we were required to adjust all periods for which the Senior Notes were outstanding before the date of adoption.   Upon adoption of FSP APB No. 14-1 and effective as of the issuance date of the Senior Notes, we recorded $586 million of the principal amount to equity, representing the debt discount for the difference between our estimated nonconvertible debt borrowing rate of 6.78% at the time of  issuance and the coupon rate of the Senior Notes. This debt discount, recorded in additional paid-in capital, is amortized as additional non-cash interest expense over the contractual terms of the Senior Notes using the effective interest method. In addition, we allocated $9 million of the issuance costs to the equity component of the Senior Notes and the remaining $24 million of the issuance costs to the debt component of the Senior Notes. The issuance costs were allocated pro rata based on the relative carrying amounts of the debt and equity components. The $24 million of debt issuance costs allocated to the debt component is amortized as interest expense over the respective contractual terms of the Senior Notes using the effective interest method. Each $1,000 of principal of the Senior Notes will initially be convertible into 52.2951 shares of Symantec common stock, which is the equivalent of $19.12 per share, subject to adjustment upon the occurrence of specified events. As of July 3, 2009, the remaining weighted average amortization period of the discount and debt issuance costs is approximately 3 years and the if-converted value of the Senior Notes does not exceed the principal amount of the Senior Notes.   The following table presents information regarding the equity and liability components of the Senior Notes:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="124" colspan="2" valign="top" style= "width:93.35pt;padding:0in 2.35pt 0in 2.35pt">                 As of               </td> </tr> <tr style="mso-yfti-irow:1"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 3,      2009     </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">     April 3,       2009     </td> </tr> <tr style="mso-yfti-irow:2"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt"> As Adjusted </td> </tr> <tr style="mso-yfti-irow:3"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="124" colspan="2" valign="top" style= "width:93.35pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:4"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt"> Equity component of Senior Notes..................................................................................................................................... </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $      586 </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">   $      586 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt"> Principal amount of Senior Notes........................................................................................................................................ </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  2,100 </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">   $  2,100 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt"> Unamortized discount of Senior Notes............................................................................................................................... </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (308) </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">          (334) </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt"> Liability component of Senior Notes.................................................................................................................................. </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  1,792 </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">   $  1,766 </td> </tr> </table>   The effective interest rate, contractual interest expense and amortization of debt discount for the Senior Notes for the three months ended July 3, 2009 and July 4, 2008 were as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="124" colspan="2" valign="top" style= "width:93.35pt;padding:0in 2.35pt 0in 2.35pt">    Three Months Ended   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 3,      2009     </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">      July 4,       2008     </td> </tr> <tr style="mso-yfti-irow:2"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="66" valign="top" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt"> As Adjusted </td> </tr> <tr style="mso-yfti-irow:3"> <td width="602" valign="top" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="124" colspan="2" valign="top" style= "width:93.35pt;padding:0in 2.35pt 0in 2.35pt"> ($ In millions) </td> </tr> <tr style="mso-yfti-irow:4"> <td width="602" valign="bottom" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt"> Effective interest rate............................................................................................................................................................ </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">       6.78% </td> <td width="66" valign="bottom" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">         6.78% </td> </tr> <tr style="mso-yfti-irow:5"> <td width="602" valign="bottom" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt"> Interest expense — contractual........................................................................................................................................... </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $        5 </td> <td width="66" valign="bottom" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">    $        5 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="602" valign="bottom" style= "width:451.35pt;padding:0in 2.35pt 0in 2.35pt"> Interest expense — amortization of debt discount.......................................................................................................... </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $      25 </td> <td width="66" valign="bottom" style= "width:49.15pt;padding:0in 2.35pt 0in 2.35pt">    $      24 </td> </tr> </table>   Retrospective Adoption   The retrospective adoption of FSP APB No. 14-1 resulted in the following adjustments to our Condensed Consolidated Balance Sheet as of April 3, 2009:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="523" valign="top" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="203" colspan="3" valign="top" style= "width:152.5pt;padding:0in 2.35pt 0in 2.35pt">                   As of April 3, 2009                 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="523" valign="top" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="73" valign="top" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt"> As Previously     Reported   </td> <td width="67" valign="top" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">   Adjustments          </td> <td width="63" valign="top" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        As   Adjusted  </td> </tr> <tr style="mso-yfti-irow:2"> <td width="523" valign="top" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="203" colspan="3" valign="top" style= "width:152.5pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Current assets............................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">    $     3,301 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt"> $       (4)(1) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $     3,297 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Property and equipment, net..................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">              973 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">           973 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Intangible assets, net................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">           1,639 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        1,639 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Goodwill......................................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">           4,561 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        4,561 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Investment in joint venture........................................................................................................................ </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">                97 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              97 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Long-term deferred income taxes............................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">                   7 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">                7 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Other long-term assets................................................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">                 68 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">           (4)(2) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              64 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Total assets.................................................................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">    $  10,646 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt"> $       (8) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $  10,638 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Current liabilities.......................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">    $     3,513 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt"> $       — </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $     3,513 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Convertible senior notes............................................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">           2,100 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">      (334)(3) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        1,766 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Long-term deferred revenue...................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">              419 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">           419 </td> </tr> <tr style="mso-yfti-irow:14"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Long-term deferred tax liabilities.............................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">                54 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">       127(4) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">           181 </td> </tr> <tr style="mso-yfti-irow:15"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Long-term income taxes payable............................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">              522 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">           522 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Other long-term liabilities............................................................................................................................ </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">                 90 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              90 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Total liabilities............................................................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">           6,698 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">      (207) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        6,491 </td> </tr> <tr style="mso-yfti-irow:18"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Common stock............................................................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">                   8 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">                8 </td> </tr> <tr style="mso-yfti-irow:19"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Additional paid-in capital........................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">           8,941 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">       348(5) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        9,289 </td> </tr> <tr style="mso-yfti-irow:20"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Accumulated other comprehensive income........................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">              186 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">           186 </td> </tr> <tr style="mso-yfti-irow:21"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Accumulated deficit.................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">          (5,187) </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">      (149)(6) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">       (5,336) </td> </tr> <tr style="mso-yfti-irow:22"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Total stockholders’ equity......................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">           3,948 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt">       199 </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        4,147 </td> </tr> <tr style="mso-yfti-irow:23;mso-yfti-lastrow:yes"> <td width="523" valign="bottom" style= "width:392.2pt;padding:0in 2.35pt 0in 2.35pt"> Total liabilities and stockholders’ equity................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">    $  10,646 </td> <td width="67" valign="bottom" style= "width:50.2pt;padding:0in 2.35pt 0in 2.35pt"> $       (8) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $  10,638 </td> </tr> </table>   The retrospective adoption of FSP APB No. 14-1 resulted in the following adjustments to our Condensed Consolidated Statement of Operations for the three months ended July 4, 2008:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="512" valign="top" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="214" colspan="3" valign="top" style= "width:160.5pt;padding:0in 2.35pt 0in 2.35pt">         Three Months Ended July 4, 2008       </td> </tr> <tr style="mso-yfti-irow:1"> <td width="512" valign="top" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="73" valign="top" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt"> As Previously     Reported   </td> <td width="70" valign="top" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">   Adjustments           </td> <td width="70" valign="top" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">          As     Adjusted   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="512" valign="top" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="214" colspan="3" valign="top" style= "width:160.5pt;padding:0in 2.35pt 0in 2.35pt"> (In millions, except per share amounts) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Total net revenues.................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">     $  1,650 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt"> $        — </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">    $   1,650 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Costs and expenses.................................................................................................................................. </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">          1,372 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">         1,372 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Operating income..................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">             278 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">            278 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Interest income......................................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">               18 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">               18 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Interest expense........................................................................................................................................ </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">              (10) </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">         (23)(7) </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">             (33) </td> </tr> <tr style="mso-yfti-irow:8"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Income before income taxes and loss from joint venture................................................................ </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">             286 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">         (23) </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">            263 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Provision for income taxes..................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">               94 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">            (9)(8) </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">               85 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Loss from joint venture........................................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">                  6 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">                 6 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income................................................................................................................................................ </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">     $      186 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt"> $      (14) </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">    $      172 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income per share — basic............................................................................................................... </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">     $     0.22 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt"> $   (0.01) </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">    $     0.21 </td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes"> <td width="512" valign="bottom" style= "width:384.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income per share — diluted............................................................................................................ </td> <td width="73" valign="bottom" style= "width:55.05pt;padding:0in 2.35pt 0in 2.35pt">     $     0.22 </td> <td width="70" valign="bottom" style= "width:52.8pt;padding:0in 2.35pt 0in 2.35pt"> $   (0.02) </td> <td width="70" valign="bottom" style= "width:52.65pt;padding:0in 2.35pt 0in 2.35pt">    $     0.20 </td> </tr> </table> ____________   <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (1) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the cumulative adjustments to the current portion of the debt issuance costs associated with the Senior Notes. </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (2) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the cumulative adjustments to the long-term portion of the debt issuance costs associated with the Senior Notes. </td> </tr> <tr style="mso-yfti-irow:3"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:4"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (3) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the remaining unamortized debt discount on the Senior Notes. </td> </tr> <tr style="mso-yfti-irow:5"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:6"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (4) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the long-term deferred income tax impact of the reduction in the book basis, with no corresponding reduction in the tax basis, of the Senior Notes. </td> </tr> <tr style="mso-yfti-irow:7"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:8"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (5) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the equity component of the Senior Notes, net of tax adjustments to the tax benefit of call options, due to the amortization of the debt discount. </td> </tr> <tr style="mso-yfti-irow:9"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:10"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (6) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the cumulative Net income impact of the amortization of the debt discount, recognized as additional non-cash interest expense, and the associated tax adjustments since inception of the Senior Notes. </td> </tr> <tr style="mso-yfti-irow:11"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:12"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (7) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the amortization of the debt discount, recognized as additional non-cash interest expense, net of the decrease in interest expense associated with the debt issuance costs. </td> </tr> <tr style="mso-yfti-irow:13"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:14;mso-yfti-lastrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (8) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> This amount represents the tax effect of the amortization of the debt discount and debt issuance costs. </td> </tr> </table> </div>   The retrospective adoption of FSP APB No. 14-1 does not affect our balance of Cash and cash equivalents and as a result did not change Net cash flows from operating, investing or financing activities in our Condensed Consolidated Statement of Cash Flows for the three months ended July 4, 2008.   The retrospective adoption of FSP APB No. 14-1 resulted in the following adjustments to our Condensed Consolidated Statements of Stockholders’ Equity:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="594" valign="top" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="63" valign="top" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> Additional    Paid-In    Capital   </td> <td width="69" valign="top" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt"> Accumulated     (Deficit)    Earnings   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="594" valign="top" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="132" colspan="2" valign="top" style= "width:99.15pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:2"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Balances, March 30, 2007, as reported........................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $  10,061 </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">   $    1,348 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Equity component of Senior Notes, net of taxes........................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">           357 </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">               — </td> </tr> <tr style="mso-yfti-irow:4"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Equity component of debt issuance costs...................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">               (9) </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">               — </td> </tr> <tr style="mso-yfti-irow:5"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Amoritzation of debt discount.......................................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">              (64) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Amortization of debt issuance costs, net of reversal of previously recorded amortization of debt issuance costs..................................................................................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">                 1 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Tax adjustments.................................................................................................................................................................. </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">               25 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Balances, March 30, 2007, as adjusted.......................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">      10,409 </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">         1,310 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Fiscal 2008 equity activity, as reported........................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">          (922) </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">             317 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Amortization of debt discount.......................................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">              (91) </td> </tr> <tr style="mso-yfti-irow:11"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Amortization of debt issuance costs, net of reversal of previously recorded amortization of debt issuance costs..................................................................................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">                 2 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Tax adjustments.................................................................................................................................................................. </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">               36 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Balances, March 28, 2008, as adjusted.......................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        9,487 </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">         1,574 </td> </tr> <tr style="mso-yfti-irow:14"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Fiscal 2009 equity activity, as reported........................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">          (198) </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">        (6,853) </td> </tr> <tr style="mso-yfti-irow:15"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Amortization of debt discount.......................................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">              (97) </td> </tr> <tr style="mso-yfti-irow:16"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Amortization of debt issuance costs, net of reversal of previously recorded amortization of debt issuance costs..................................................................................................................................................................................... </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">                 2 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Tax adjustments.................................................................................................................................................................. </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">               38 </td> </tr> <tr style="mso-yfti-irow:18;mso-yfti-lastrow:yes"> <td width="594" valign="bottom" style= "width:445.55pt;padding:0in 2.35pt 0in 2.35pt"> Balances, April 3, 2009, as adjusted................................................................................................................................ </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $     9,289 </td> <td width="69" valign="bottom" style= "width:51.9pt;padding:0in 2.35pt 0in 2.35pt">   $  (5,336) </td> </tr> </table>   Upon adoption of FSP APB No. 14-1 and effective as of the issuance date of the Senior Notes, we recorded, as adjustments to additional paid-in capital, deferred taxes for the differences between the carrying value and tax basis that resulted from allocating $586 million of the principal amount of the Senior Notes and $9 million of the associated issuance costs to equity. In subsequent periods, we recorded adjustments to deferred taxes to reflect the tax effect of the amortization of the debt discount and debt issuance costs. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUCd18e3e532a9448fe9e497cec24c055e9"> Note 10.  Stock-based Compensation</a>   The following table sets forth the total stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations for the three months ended July 3, 2009 and July 4, 2008:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="542" valign="top" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="185" colspan="2" valign="top" style= "width:138.5pt;padding:0in 2.35pt 0in 2.35pt">              Three Months Ended             </td> </tr> <tr style="mso-yfti-irow:1"> <td width="542" valign="top" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">          July 3,           2009          </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">          July 4,           2008          </td> </tr> <tr style="mso-yfti-irow:2"> <td width="542" valign="top" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="185" colspan="2" valign="top" style= "width:138.5pt;padding:0in 2.35pt 0in 2.35pt"> (In millions, except per share data) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Cost of revenues — Content, subscriptions, and maintenance................................................................ </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $        4 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $        3 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Cost of revenues — Licenses........................................................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   1 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   1 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Sales and marketing.......................................................................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 18 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 19 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Research and development............................................................................................................................. </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 17 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 13 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> General and administrative.............................................................................................................................. </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   9 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   9 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Total stock-based compensation expense................................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 49 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 45 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Tax benefit associated with stock-based compensation expense............................................................ </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 13 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 12 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net effect of stock-based compensation expense on operations............................................................ </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $      36 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $      33 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net effect of stock-based compensation expense on earnings per share — basic............................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.04 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.04 </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net effect of stock-based compensation expense on earnings per share — diluted............................ </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.04 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.04 </td> </tr> </table>   As of July 3, 2009, total unrecognized compensation expense adjusted for estimated forfeitures related to unvested stock options and Restricted Stock Units (“RSUs”), was $80 million and $132 million, respectively, which is expected to be recognized over the remaining weighted-average vesting periods of 2 years for stock options and 3 years for RSUs.   The weighted-average fair value per stock option granted during the three months ended July 3, 2009 and July 4, 2008 was $5.16 and $5.23, respectively. The total intrinsic value of options exercised during the three months ended July 3, 2009 and July 4, 2008, including assumed options, was $15 million and $52 million, respectively.   The weighted-average fair value per RSUs granted during the three months ended July 3, 2009 and July 4, 2008 was $15.38 and $19.94, respectively. The fair value of RSUs granted for the three months ended July 3, 2009 and July 4, 2008, was $145 million and $171 million, respectively. The total fair value of RSUs that vested during the three months ended July 3, 2009 and July 4, 2008, including assumed RSUs, was $63 million and $49 million, respectively.   During the three months ended July 3, 2009, we granted 93,992 Restricted Stock Awards (“RSAs”) to members of our board of directors. Each RSA had a fair value of $15.32 and vested immediately upon grant. As a result, we recorded $1 million of stock-based compensation expense for these RSAs during the three months ended July 3, 2009. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUCa2e99268a04847f8acebdec12a338998"> Note 12.  Earnings Per Share</a>   The components of earnings per share are as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="542" valign="top" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="185" colspan="2" valign="top" style= "width:138.5pt;padding:0in 2.35pt 0in 2.35pt">              Three Months Ended             </td> </tr> <tr style="mso-yfti-irow:1"> <td width="542" valign="top" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">          July 3,           2009          </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">          July 4,           2008          </td> </tr> <tr style="mso-yfti-irow:2"> <td width="542" valign="top" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="185" colspan="2" valign="top" style= "width:138.5pt;padding:0in 2.35pt 0in 2.35pt"> (In millions, except per share data) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income per share — basic: </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                      </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                      </td> </tr> <tr style="mso-yfti-irow:4"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income.......................................................................................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $      73 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $   172 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income per share — basic......................................................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.09 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.21 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Weighted average outstanding common shares.......................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               816 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               839 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income per share — diluted: </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                      </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                      </td> </tr> <tr style="mso-yfti-irow:8"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income.......................................................................................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $      73 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $   172 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Net income per share — diluted...................................................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.09 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $  0.20 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Weighted-average outstanding common shares.......................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               816 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               839 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Shares issuable from assumed exercise of options..................................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   8 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 13 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Dilutive impact of restricted stock and restricted stock units................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   3 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   1 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Dilutive impact of assumed conversion of Senior Notes........................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                 — </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   1 </td> </tr> <tr style="mso-yfti-irow:14;mso-yfti-lastrow:yes"> <td width="542" valign="bottom" style= "width:406.2pt;padding:0in 2.35pt 0in 2.35pt"> Total weighted-average shares outstanding — diluted............................................................................... </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               827 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               854 </td> </tr> </table>   We excluded 56 million and 55 million weighted-average stock options for the three months ended July 3, 2009 and July 4, 2008, respectively, because their effect would have been anti-dilutive. The effect of the warrants issued and options purchased in connection with the convertible senior notes were also excluded for the reasons discussed in Note 8 of Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended April 3, 2009. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUCae180593e92c4932bb5b85c6d46e0d8e"> Note 2.  Fair Value Measurements</a>   We measure assets and liabilities at fair value based upon exit price, representing the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. SFAS No. 157 (as impacted by FSP Nos. 157-1, 157-2, 157-3, and 157-4) establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:   •  Level 1:  Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.   •  Level 2:  Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.   •  Level 3:  Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.   Assets Measured and Recorded at Fair Value on a Recurring Basis   The following table summarizes our assets that are measured at fair value on a recurring basis, by level within the fair value hierarchy:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="189" colspan="4" valign="top" style= "width:141.7pt;padding:0in 2.35pt 0in 2.35pt">                 As of July 3, 2009                </td> <td width="189" colspan="4" valign="top" style= "width:141.7pt;padding:0in 2.35pt 0in 2.35pt">                As of April 3, 2009               </td> </tr> <tr style="mso-yfti-irow:1"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">   Level 1 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> Level 2      </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> Level 3      </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">    Total   </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> Level 1      </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">   Level 2 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> Level 3      </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">    Total   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="378" colspan="8" valign="top" style= "width:283.4pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt"> Cash equivalents: </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:4"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">  Money market funds........................................................................ </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,312 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">           $        — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> $   — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,312 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">           $     389 </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $        — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> $   — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $     389 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">  Bank securities and deposits........................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      320 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         320 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         474 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         474 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">  Government securities...................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">                    25 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           25 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">                     — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         479 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         479 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt"> Cash equivalents total:..................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">     1,312 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      345 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">     1,657 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      389 </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         953 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">     1,342 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt"> Short-term investments: </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:9"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">  Asset-backed securities.................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">        10 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           10 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           13 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           13 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">  Corporate securities.......................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">           8 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             8 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             8 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             8 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">  Government securities...................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         175 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         175 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">  Marketable equity securities........................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             6 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">                     — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             6 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">                       3 </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             3 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt"> Short-term investments total:.......................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             6 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">                    18 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           24 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">                       3 </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         196 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">      — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         199 </td> </tr> <tr style="mso-yfti-irow:14;mso-yfti-lastrow:yes"> <td width="348" valign="top" style= "width:261.3pt;padding:0in 2.35pt 0in 2.35pt">   Total................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,318 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">           $     363 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> $   — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,681 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt">           $     392 </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,149 </td> <td width="43" valign="top" style= "width:32.3pt;padding:0in 2.35pt 0in 2.35pt"> $   — </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,541 </td> </tr> </table>   Level 2 fixed income available-for-sale securities are priced using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or discounted cash flow techniques.   Assets Measured and Recorded at Fair Value on a Nonrecurring Basis   The following table summarizes our financial assets measured at fair value on a non-recurring basis, by level within the fair value hierarchy:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="508" valign="top" style= "width:381.05pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 3,      2009     </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">   Level 1      </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">   Level 2      </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">   Level 3      </td> <td width="32" valign="top" style= "width:23.9pt;padding:0in 2.35pt 0in 2.35pt"> Total Loss    </td> </tr> <tr style="mso-yfti-irow:1"> <td width="508" valign="top" style= "width:381.05pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="218" colspan="5" valign="top" style= "width:163.65pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:2;mso-yfti-lastrow:yes"> <td width="508" valign="top" style= "width:381.05pt;padding:0in 2.35pt 0in 2.35pt"> Assets held for sale.................................................................................................................................. </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">     $  56 </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">     — </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt"> $  56 </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">     — </td> <td width="32" valign="top" style= "width:23.9pt;padding:0in 2.35pt 0in 2.35pt"> $  3 </td> </tr> </table>   Assets held for sale were written down during the three months ended July 3, 2009 to reflect fair value less estimated costs to sell. The fair value measurement was based upon recent offers made by third parties to purchase the properties. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUC3cafacd1fafd462cb5d092cc38eeead2"> Note 5.  Goodwill and Intangible Assets</a>   Goodwill   We account for goodwill in accordance with SFAS No. 142, Goodwill and Other Intangible Assets. As such, we allocate goodwill to our reporting units, which are the same as our operating segments. Goodwill is allocated by operating segment as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="405" valign="top" style= "width:303.8pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">   Consumer        </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt"> Security and Compliance          </td> <td width="101" valign="top" style= "width:75.45pt;padding:0in 2.35pt 0in 2.35pt"> Storage and Server      Management     </td> <td width="46" valign="top" style= "width:34.35pt;padding:0in 2.35pt 0in 2.35pt">   Services       </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">      Total   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="405" valign="top" style= "width:303.8pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="321" colspan="5" valign="top" style= "width:240.9pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:2"> <td width="405" valign="bottom" style= "width:303.8pt;padding:0in 2.35pt 0in 2.35pt"> Balance as of April 3, 2009................................................................................ </td> <td width="56" valign="bottom" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">   $  356 </td> <td width="68" valign="bottom" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">    $  1,355 </td> <td width="101" valign="bottom" style= "width:75.45pt;padding:0in 2.35pt 0in 2.35pt">         $  2,457 </td> <td width="46" valign="bottom" style= "width:34.35pt;padding:0in 2.35pt 0in 2.35pt"> $  393 </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  4,561 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="405" valign="bottom" style= "width:303.8pt;padding:0in 2.35pt 0in 2.35pt"> Operating segment reclassification(1)............................................................... </td> <td width="56" valign="bottom" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="68" valign="bottom" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">            103 </td> <td width="101" valign="bottom" style= "width:75.45pt;padding:0in 2.35pt 0in 2.35pt">                      2 </td> <td width="46" valign="bottom" style= "width:34.35pt;padding:0in 2.35pt 0in 2.35pt">    (105) </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> </tr> <tr style="mso-yfti-irow:4"> <td width="405" valign="bottom" style= "width:303.8pt;padding:0in 2.35pt 0in 2.35pt"> Goodwill adjustments(2)..................................................................................... </td> <td width="56" valign="bottom" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">            7 </td> <td width="68" valign="bottom" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">              11 </td> <td width="101" valign="bottom" style= "width:75.45pt;padding:0in 2.35pt 0in 2.35pt">                    — </td> <td width="46" valign="bottom" style= "width:34.35pt;padding:0in 2.35pt 0in 2.35pt">        10 </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           28 </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="405" valign="bottom" style= "width:303.8pt;padding:0in 2.35pt 0in 2.35pt"> Balance as of July 3, 2009................................................................................. </td> <td width="56" valign="bottom" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">   $  363 </td> <td width="68" valign="bottom" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">    $  1,469 </td> <td width="101" valign="bottom" style= "width:75.45pt;padding:0in 2.35pt 0in 2.35pt">         $  2,459 </td> <td width="46" valign="bottom" style= "width:34.35pt;padding:0in 2.35pt 0in 2.35pt"> $  298 </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  4,589 </td> </tr> </table> ____________   <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (1) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> During the first quarter of fiscal 2010, we modified our segment reporting structure to more readily match our operating structure. Refer to Note 9 for further discussion on segment information. </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt">   </td> </tr> <tr style="mso-yfti-irow:2;mso-yfti-lastrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (2) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> Adjustments made to goodwill reflect the finalization of purchase price and tax adjustments related to prior acquisitions. </td> </tr> </table> </div>   We apply a fair value based impairment test to the net book value of goodwill and indefinite-lived intangible assets on an annual basis on the first day of the fourth quarter of each fiscal year or earlier if indicators of impairment exist. As of July 3, 2009, no indicators of impairment were identified.   Intangible assets, net   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="289" colspan="4" valign="top" style= "width:216.6pt;padding:0in 2.35pt 0in 2.35pt">                                      July 3, 2009                                     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">    Gross Carrying Amount </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   Accumulated Amortization           </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">   Net Carrying      Amount    </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt">        Weighted-Average       Remaining       Useful Life      </td> </tr> <tr style="mso-yfti-irow:2"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="289" colspan="4" valign="top" style= "width:216.6pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Customer relationships................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,832 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   $      (804) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">    $  1,028 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 4 years </td> </tr> <tr style="mso-yfti-irow:4"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Developed technology.................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">      1,777 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">        (1,473) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">            304 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 1 year </td> </tr> <tr style="mso-yfti-irow:5"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Definite-lived tradenames.............................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         130 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">              (58) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">               72 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 5 years </td> </tr> <tr style="mso-yfti-irow:6"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Patents............................................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           76 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">              (48) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">               28 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 4 years </td> </tr> <tr style="mso-yfti-irow:7"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Indefinite-lived tradenames........................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           54 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">               — </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">              54 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> Indefinite </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">  Total.................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  3,869 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   $   (2,383) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">    $  1,486 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 3 years </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="289" colspan="4" valign="top" style= "width:216.6pt;padding:0in 2.35pt 0in 2.35pt">                                     April 3, 2009                                     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">    Gross Carrying Amount </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   Accumulated Amortization           </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">   Net Carrying      Amount    </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt">        Weighted-Average       Remaining       Useful Life      </td> </tr> <tr style="mso-yfti-irow:2"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="289" colspan="4" valign="top" style= "width:216.6pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Customer relationships................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,830 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   $      (745) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">    $  1,085 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 5 years </td> </tr> <tr style="mso-yfti-irow:4"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Developed technology.................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">      1,785 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">        (1,390) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">            395 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 1 year </td> </tr> <tr style="mso-yfti-irow:5"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Definite-lived tradenames.............................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         130 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">              (54) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">               76 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 6 years </td> </tr> <tr style="mso-yfti-irow:6"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Patents............................................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           76 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">              (46) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">               30 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 4 years </td> </tr> <tr style="mso-yfti-irow:7"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt"> Indefinite-lived tradenames........................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           53 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">               — </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">              53 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> Indefinite </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="437" valign="top" style= "width:328.1pt;padding:0in 2.35pt 0in 2.35pt">  Total.................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  3,874 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   $   (2,235) </td> <td width="72" valign="top" style= "width:53.7pt;padding:0in 2.35pt 0in 2.35pt">    $  1,639 </td> <td width="96" valign="top" style= "width:71.65pt;padding:0in 2.35pt 0in 2.35pt"> 3 years </td> </tr> </table>   During the three months ended July 3, 2009 and July 4, 2008, total amortization expense for intangible assets was $160 million and $140 million, respectively.   Total amortization expense for intangible assets which have definite lives, based upon our existing intangible assets and their current estimated useful lives as of July 3, 2009, is estimated to be as follows (in millions):   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="675" valign="top" style= "width:506.15pt;padding:0in 2.35pt 0in 2.35pt"> Remainder of fiscal 2010.............................................................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $     320 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="675" valign="top" style= "width:506.15pt;padding:0in 2.35pt 0in 2.35pt"> 2011.................................................................................................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         337 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="675" valign="top" style= "width:506.15pt;padding:0in 2.35pt 0in 2.35pt"> 2012.................................................................................................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         294 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="675" valign="top" style= "width:506.15pt;padding:0in 2.35pt 0in 2.35pt"> 2013.................................................................................................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         262 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="675" valign="top" style= "width:506.15pt;padding:0in 2.35pt 0in 2.35pt"> 2014.................................................................................................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         118 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="675" valign="top" style= "width:506.15pt;padding:0in 2.35pt 0in 2.35pt"> Thereafter......................................................................................................................................................................................................... </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">         101 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="675" valign="top" style= "width:506.15pt;padding:0in 2.35pt 0in 2.35pt"> Total.................................................................................................................................................................................................................. </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  1,432 </td> </tr> </table> <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; 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<div> <a name= "_AUCf34a0f8c0d2247829cbccbddf72e4a20"> Note 11.  Income Taxes</a>   The effective tax rate was approximately 33% and 32% for the three months ended July 3, 2009 and July 4, 2008, respectively. The effective tax rates for both periods reflect the benefits of lower-taxed foreign earnings, domestic manufacturing tax incentives, and research and development credits, offset by state income taxes and non-deductible stock-based compensation. As discussed further below<ins cite="mailto:Lisa" datetime= "2009-08-05T09:59">,</ins> the tax expense for the three months ended July 3, 2009 includes a $7 million tax expense related to the U.S. tax treatment of certain stock based compensation. For the three months ended July 4, 2008, we recorded a $5 million tax benefit related to a favorable Irish settlement. The effective tax rate for the three months ended July 3, 2009 is otherwise lower than in the three months ended July 4, 2008 primarily due to higher benefits from lower-taxed foreign earnings.   On May 27, 2009, the U.S. Court of Appeals for the Ninth Circuit overturned a 2005 U.S. Tax Court ruling in Xilinx, Inc. v. Commissioner, holding that stock-based compensation related to research and development (“R&D”) must be shared by the participants of a R&D cost sharing arrangement. The Ninth Circuit held that related parties to such an arrangement must share stock option costs, notwithstanding the U.S. Tax Court’s finding that unrelated parties in such an arrangement would not share such costs.  We have a similar R&D cost sharing arrangement in place. The Ninth Circuit’s reversal of the U.S. Tax Court’s decision changes our estimate of stock option related tax benefits previously recognized under Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109. As a result of the Ninth Circuit’s ruling, we increased our liability for unrecognized tax benefits, recording a tax expense of approximately $7 million and a reduction of additional paid-in capital of approximately $30 million in the three months ended July 3, 2009.    On March 29, 2006, we received a Notice of Deficiency from the IRS claiming that we owe $867 million of additional taxes, excluding interest and penalties, for the 2000 and 2001 tax years based on an audit of Veritas. On June 26, 2006, we filed a petition with the U.S. Tax Court protesting the IRS claim for such additional taxes. In the March 2007 quarter, we agreed to pay $7 million out of $35 million originally assessed by the IRS in connection with several of the lesser issues covered in the assessment. The IRS agreed to waive the assessment of penalties. During July 2008, we completed the trial phase of the Tax Court case, which dealt with the remaining issue covered in the assessment. At trial, the IRS changed its position with respect to this remaining issue, which decreased the remaining amount at issue from $832 million to $545 million, excluding interest. We filed our post-trial briefs in October 2008 and rebuttal briefs in November 2008 with the U.S. Tax Court. There have been no further developments in this case in the June 2009 quarter, as we continue to await the decision of the U.S. Tax Court.   We continue to monitor the progress of ongoing tax controversies and the impact, if any, of the expected tolling of the statute of limitations in various taxing jurisdictions. Considering these facts, we do not currently believe that there is a reasonable possibility of any significant change to our total unrecognized tax benefits within the next twelve months. <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUCa1feb3bec2494482aa2ccfdb0dd3914a"> Note 3.  Investments</a>   Short-term investments   The following summarizes our available-for-sale investments:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="233" colspan="4" valign="top" style= "width:175.1pt;padding:0in 2.35pt 0in 2.35pt">                             July 3, 2009                           </td> <td width="235" colspan="4" valign="top" style= "width:176.2pt;padding:0in 2.35pt 0in 2.35pt">                            April 3, 2009                           </td> </tr> <tr style="mso-yfti-irow:1"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt"> Amortized      Cost     </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Gains    </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Losses   </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt"> Estimated Fair Value         </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt"> Amortized      Cost     </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Gains    </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Losses   </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt"> Estimated Fair Value         </td> </tr> <tr style="mso-yfti-irow:2"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="468" colspan="8" valign="top" style= "width:351.3pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt"> Asset-backed securities....................................... </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">     $  12 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $   (2) </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">     $  10 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">    $     15 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $   (2) </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">    $     13 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt"> Corporate securities............................................. </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">            8 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">            8 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">             8 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">             8 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt"> Government securities......................................... </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">         175 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">         175 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt"> Marketable equity securities.............................. </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">            2 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">            4 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">            6 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">             2 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">             3 </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="258" valign="top" style= "width:193.4pt;padding:0in 2.35pt 0in 2.35pt">   Total..................................................................... </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">     $  22 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $     4 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $   (2) </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">     $  24 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">    $  200 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $     1 </td> <td width="59" valign="top" style= "width:43.95pt;padding:0in 2.35pt 0in 2.35pt">     $   (2) </td> <td width="59" valign="top" style= "width:44.35pt;padding:0in 2.35pt 0in 2.35pt">    $  199 </td> </tr> </table>   The following table provides the gross unrealized losses and the fair market value of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the following periods ended:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="9%" valign="top" style= "width:9.76%;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="44%" colspan="6" valign="top" style= "width:44.8%;padding:0in 2.35pt 0in 2.35pt">                                                July 3, 2009                                      </td> <td width="45%" colspan="6" valign="top" style= "width:45.42%;padding:0in 2.35pt 0in 2.35pt">                                             April 3, 2009                                        </td> </tr> <tr style="mso-yfti-irow:1"> <td width="9%" valign="top" style= "width:9.76%;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="14%" colspan="2" valign="top" style= "width:14.5%;padding:0in 2.35pt 0in 2.35pt"> Less than 12            Months           </td> <td width="15%" colspan="2" valign="top" style= "width:15.12%;padding:0in 2.35pt 0in 2.35pt"> 12 Months or            Greater          </td> <td width="15%" colspan="2" valign="bottom" style= "width:15.18%;padding:0in 2.35pt 0in 2.35pt">               Total            </td> <td width="15%" colspan="2" valign="top" style= "width:15.16%;padding:0in 2.35pt 0in 2.35pt"> Less than 12            Months          </td> <td width="15%" colspan="2" valign="top" style= "width:15.14%;padding:0in 2.35pt 0in 2.35pt"> 12 Months or           Greater           </td> <td width="15%" colspan="2" valign="bottom" style= "width:15.12%;padding:0in 2.35pt 0in 2.35pt">            Total             </td> </tr> <tr style="mso-yfti-irow:2"> <td width="9%" valign="top" style= "width:9.76%;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="6%" valign="top" style= "width:6.34%;padding:0in 2.35pt 0in 2.35pt">   Losses </td> <td width="8%" valign="top" style= "width:8.16%;padding:0in 2.35pt 0in 2.35pt"> Fair Value </td> <td width="7%" valign="top" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">   Losses  </td> <td width="8%" valign="top" style= "width:8.1%;padding:0in 2.35pt 0in 2.35pt"> Fair Value </td> <td width="7%" valign="top" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">    Losses  </td> <td width="8%" valign="top" style= "width:8.16%;padding:0in 2.35pt 0in 2.35pt"> Fair Value </td> <td width="7%" valign="top" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">   Losses  </td> <td width="8%" valign="top" style= "width:8.14%;padding:0in 2.35pt 0in 2.35pt"> Fair Value </td> <td width="7%" valign="top" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">    Losses  </td> <td width="8%" valign="top" style= "width:8.12%;padding:0in 2.35pt 0in 2.35pt"> Fair Value </td> <td width="7%" valign="top" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">      Losses          </td> <td width="8%" valign="top" style= "width:8.1%;padding:0in 2.35pt 0in 2.35pt"> Fair Value </td> </tr> <tr style="mso-yfti-irow:3"> <td width="9%" valign="top" style= "width:9.76%;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="90%" colspan="12" valign="top" style= "width:90.24%;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes"> <td width="9%" valign="bottom" style= "width:9.76%;padding:0in 2.35pt 0in 2.35pt"> Asset-backed securities.. </td> <td width="6%" valign="bottom" style= "width:6.34%;padding:0in 2.35pt 0in 2.35pt">      $  — </td> <td width="8%" valign="bottom" style= "width:8.16%;padding:0in 2.35pt 0in 2.35pt">      $    — </td> <td width="7%" valign="bottom" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">       $   2 </td> <td width="8%" valign="bottom" style= "width:8.1%;padding:0in 2.35pt 0in 2.35pt">      $   10 </td> <td width="7%" valign="bottom" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">       $   2 </td> <td width="8%" valign="bottom" style= "width:8.16%;padding:0in 2.35pt 0in 2.35pt">      $   10 </td> <td width="7%" valign="bottom" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">      $    — </td> <td width="8%" valign="bottom" style= "width:8.14%;padding:0in 2.35pt 0in 2.35pt">      $    — </td> <td width="7%" valign="bottom" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">       $   2 </td> <td width="8%" valign="bottom" style= "width:8.12%;padding:0in 2.35pt 0in 2.35pt">      $   13 </td> <td width="7%" valign="bottom" style= "width:7.02%;padding:0in 2.35pt 0in 2.35pt">       $   2 </td> <td width="8%" valign="bottom" style= "width:8.1%;padding:0in 2.35pt 0in 2.35pt">      $   13 </td> </tr> </table>   Proceeds from sales of available-for-sale securities were $183 million primarily from the sales of government securities and $472 million primarily from the sales of asset-backed securities for the three months ended July 3, 2009 and July 4, 2008, respectively. Gross realized losses on these sales were not material for the same periods.   Equity investments   As of July 3, 2009 and April 3, 2009, we held equity investments in privately-held companies of $17 million and $3 million, respectively. For both the three months ended July 3, 2009 and July 4, 2008, other-than-temporary losses related to these investments were not material. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUC3c063640c0cf48039dd0542eba37495a"> Note 6.  Restructuring</a>   Our restructuring costs and liabilities consist of severance, benefits, facilities and other costs in accordance with SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities, and SFAS No. 112, Employers’ Accounting for Postemployment Benefits. Severance and benefits generally include severance, stay-put or one-time bonuses, outplacement services, health insurance coverage, effects of foreign currency exchange and legal costs. Facilities’ costs generally include rent expense, less expected sublease income and lease termination costs. Other costs generally include relocation, asset abandonment costs, the effects of foreign currency exchange and consulting services. Also included in Restructuring in our Condensed Consolidated Statements of Operations are transition and transformation fees, consulting charges, and other costs related to the outsourcing of back office functions. Restructuring expenses generally do not impact a particular reporting segment and are included in the “Other” reporting segment.   Charges for restructuring costs were $23 million and $14 million for the three months ended July 3, 2009 and July 4, 2008, respectively. Transition, transformation, and related other costs were $11 million and $3 million for the three months ended July 3, 2009 and July 4, 2008, respectively. Restructuring charges related to the years prior to the 2008 Plan are substantially complete, and total remaining costs are not expected to be material. Transition and transformation related activities are expected to be substantially complete at the end of fiscal 2010. Total remaining costs for these activities are estimated to be approximately $30 million.   2009 Restructuring Plan (“2009 Plan”)   In the third quarter of fiscal 2009, management approved and initiated the following restructuring events to:   •  Reduce operating costs through a worldwide headcount reduction.  Charges related to this action are for severance and benefits. These actions were initiated in the third quarter of fiscal 2009 and are expected to be substantially completed in fiscal 2010. Total remaining costs for relocation are not expected to be material.   •  Consolidate facilities.  In an ongoing effort to consolidate facilities, we decided to move our corporate headquarters to Mountain View, California. Charges related to this action will primarily be associated with moving costs. These actions have been initiated and costs are expected to be substantially completed in fiscal 2010 but are not expected to be material.   2008 Restructuring Plan (“2008 Plan”)   In the third quarter of fiscal 2008, management approved and initiated the following restructuring events to:   •  Reduce operating costs through a worldwide headcount reduction.  This action was initiated in the third quarter of fiscal 2008 and was substantially completed in the fourth quarter of fiscal 2008. Charges related to this action are for severance and benefits. Total remaining costs are not expected to be material.   •  Reduce operating costs, implement management structure changes, optimize the business structure and discontinue certain products.  Charges related to these actions are for severance and benefits. These actions were initiated in the third quarter of fiscal 2008 and are expected to be completed in fiscal 2010. Total remaining costs for this component are estimated to range from $10 million to $15 million.   •  Outsource certain back office functions worldwide.  Charges related to these actions are primarily for severance and benefits. These actions were initiated in the beginning of fiscal 2009 and are expected to be substantially completed in fiscal 2010. Total remaining costs for severance and benefits are expected to range from $10 million to $35 million.   Acquisition-Related Restructuring Plans   As a result of business acquisitions, management may deem certain job functions to be redundant and facilities to be in excess either at the time of acquisition or for a period of time after the acquisition in conjunction with our integration efforts. For acquisitions made prior to fiscal 2010, such restructuring-related costs have generally been adjusted to goodwill to reflect changes in the purchase price of the respective acquisition. With the adoption of SFAS No. 141(R) Business Combinations, revised, restructuring charges related to our business acquisitions occurring beginning in fiscal 2010 will be expensed in our Condensed Consolidated Statements of Operations. As of July 3, 2009, acquisition-related restructuring liabilities, primarily related to excess facility obligations at several locations around the world, are expected to be paid between fiscal 2010 and fiscal 2016 when their respective lease terms end.   Restructuring Summary   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="410" valign="top" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="316" colspan="5" valign="top" style= "width:237.2pt;padding:0in 2.35pt 0in 2.35pt">                                  Restructuring Liability                                 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="410" valign="top" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">       April 3,       2009     </td> <td width="79" valign="top" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">        Costs,        Net of Adjustments(1)            </td> <td width="53" valign="top" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">       Cash Payments        </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">      July 3,      2009     </td> <td width="62" valign="top" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt"> Cumulative Incurred to       Date     </td> </tr> <tr style="mso-yfti-irow:2"> <td width="410" valign="top" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="316" colspan="5" valign="top" style= "width:237.2pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> 2009 Restructuring Plan: </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:4"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Severance............................................................................................................... </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">      $     3 </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">        $   — </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">   $     (2) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">     $     1 </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">     $    40 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> 2008 Restructuring Plan: </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:6"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Severance............................................................................................................... </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">             7 </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">             18 </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">        (17) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            8 </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">           83 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Acquisition Restructuring Plans: </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:8"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Severance............................................................................................................... </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">             1 </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">             — </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">         119 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Facilities.................................................................................................................. </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">           16 </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">               5 </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">          (3) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          18 </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">           51 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Total....................................................................................................................... </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">      $  27 </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">        $  23 </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">   $  (22) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">     $  28 </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:11"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Transition, transformation and other costs:.................................................. </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">             11 </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">           32 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Total Restructuring Charges:....................................................................... </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">        $  34 </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:13"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Balance Sheet: </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:14"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Other current liabilities.......................................................................................... </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">      $  21 </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">     $  19 </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:15"> <td width="410" valign="bottom" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt"> Other long-term liabilities..................................................................................... </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">             6 </td> <td width="79" valign="bottom" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="bottom" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            9 </td> <td width="62" valign="bottom" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:16;mso-yfti-lastrow:yes"> <td width="410" valign="top" style= "width:307.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">      $  27 </td> <td width="79" valign="top" style= "width:59.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="top" style= "width:39.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">     $  28 </td> <td width="62" valign="top" style= "width:46.6pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> </table> ____________   <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%" style= "width:100.0%;border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="5%" valign="top" style= "width:5.18%;padding:0in 4.5pt 0in 4.5pt"> (1) </td> <td width="94%" valign="top" style= "width:94.82%;padding:0in 4.5pt 0in 4.5pt"> Total net adjustments or reversals were not material for the first three months of fiscal 2010. </td> </tr> </table> </div> <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; 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<div> <a name= "_AUC22f9c01880ab4d4c944952835388494d"> Note 8.  Stock Repurchases</a>   The following table presents a summary of our stock repurchases:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="548" valign="top" style= "width:410.9pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="178" valign="top" style= "width:133.8pt;padding:0in 2.35pt 0in 2.35pt">             Three Months Ended                    July 3, 2009                  </td> </tr> <tr style="mso-yfti-irow:1"> <td width="548" valign="top" style= "width:410.9pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="178" valign="top" style= "width:133.8pt;padding:0in 2.35pt 0in 2.35pt"> (In millions, except per share data) </td> </tr> <tr style="mso-yfti-irow:2"> <td width="548" valign="top" style= "width:410.9pt;padding:0in 2.35pt 0in 2.35pt"> Total number of shares repurchased................................................................................................................ </td> <td width="178" valign="top" style= "width:133.8pt;padding:0in 2.35pt 0in 2.35pt">                                             8 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="548" valign="top" style= "width:410.9pt;padding:0in 2.35pt 0in 2.35pt"> Dollar amount of shares repurchased............................................................................................................... </td> <td width="178" valign="top" style= "width:133.8pt;padding:0in 2.35pt 0in 2.35pt">            $                         123 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="548" valign="top" style= "width:410.9pt;padding:0in 2.35pt 0in 2.35pt"> Average price paid per share.............................................................................................................................. </td> <td width="178" valign="top" style= "width:133.8pt;padding:0in 2.35pt 0in 2.35pt">            $                      15.59 </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="548" valign="top" style= "width:410.9pt;padding:0in 2.35pt 0in 2.35pt"> Range of price paid per share............................................................................................................................. </td> <td width="178" valign="top" style= "width:133.8pt;padding:0in 2.35pt 0in 2.35pt">            $    14.14 to $16.81 </td> </tr> </table>   We have had stock repurchase programs in the past. Our most recent program was authorized by our Board of Directors on June 14, 2007 to repurchase up to $2 billion of our common stock. This program does not have an expiration date, and as of July 3, 2009, $177 million remained authorized for future repurchases. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

<div> <a name= "_AUCcfec080f1cd647bbb7a94ba7b4b024f9"> Note 9.  Segment Information</a>   During the first quarter of fiscal 2010, we modified our segment reporting structure to more readily match our operating structure. The following modifications were made to our segment reporting structure: (i) Enterprise Vault products moved to the Storage and Server Management segment from the Security and Compliance segment; and (ii) Software-as-a-Service (“SaaS”) offerings moved to either the Security and Compliance segment or the Storage and Server Management segment from the Services segment, based on the nature of the service delivered. There were no changes to the Consumer or Other segments. The new reporting structure more directly aligns the operating segments with our markets and customers, and we believe it will establish more direct lines of reporting responsibilities, speed decision making, and enhance the ability to pursue product integration and strategic growth opportunities. Data shown from the prior periods has been reclassified to match the current reporting structure. As of July 3, 2009, our five operating segments are:   •  Consumer.  Our Consumer segment focuses on delivering our Internet security, PC tuneup, and backup products to individual users and home offices.   •  Security and Compliance.  Our Security and Compliance segment focuses on providing large, medium, and small-sized businesses with solutions for endpoint security and management, compliance, messaging management, and data loss prevention solutions that allow our customers to secure, provision, and remotely access their laptops, PCs, mobile devices, and servers, as well as services delivered through our SaaS offering.   •  Storage and Server Management.  Our Storage and Server Management segment focuses on providing enterprise and large enterprise customers with storage and server management, backup, archiving, and data protection solutions across heterogeneous storage and server platforms, as well as services delivered through our SaaS offerings.   •  Services.  Our Services segment provides customers with leading IT risk management services and solutions to manage security, availability, performance and compliance risks across multi-vendor environments. Our services include consulting, business critical, education, and managed security services.   •  Other.  Our Other segment is comprised of sunset products and products nearing the end of their life cycle. It also includes general and administrative expenses; amortization of acquired product rights, other intangible assets, and other assets; goodwill impairment charges; charges such as stock-based compensation and restructuring; and certain indirect costs that are not charged to the other operating segments.   Our reportable segments are the same as our operating segments. The accounting policies of the segments are described in our Annual Report on Form 10-K for the fiscal year ended April 3, 2009. There are no intersegment sales. Our chief operating decision maker evaluates performance based on direct profit or loss from operations before income taxes not including nonrecurring gains and losses, foreign exchange gains and losses, and miscellaneous other income and expenses. Except for goodwill, as disclosed in Note 5, the majority of our assets are not discretely identified by segment. The depreciation and amortization of our property, equipment, and leasehold improvements are allocated based on headcount, unless specifically identified by segment.   Segment information   The following table presents a summary of our operating segments:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">     Consumer        </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">   Security and Compliance          </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">   Storage and       Server Management           </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">     Services </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">         Other   </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">        Total   Company </td> </tr> <tr style="mso-yfti-irow:1"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="371" colspan="6" valign="top" style= "width:278.45pt;padding:0in 2.35pt 0in 2.35pt"> ($ in millions) </td> </tr> <tr style="mso-yfti-irow:2"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt"> Three months ended July 3, 2009: </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:3"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt"> Net revenues.......................................................................................... </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt"> $  447 </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">     $  336 </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">       $  553 </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt"> $     96 </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt"> $       — </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt"> $  1,432 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt">  Percentage of total net revenues....................................................... </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">         31% </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">            23% </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">              39% </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">          7% </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">            0% </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">         100% </td> </tr> <tr style="mso-yfti-irow:5"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt"> Operating income (loss)....................................................................... </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">       223 </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">            78 </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">           261 </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">          5 </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">      (415) </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">         152 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt">  Operating margin of segment............................................................ </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">         50% </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">            23% </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">              47% </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">          5% </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">            * </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:7"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt"> Three months ended July 4, 2008: </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:8"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt"> Net revenues.......................................................................................... </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt"> $  472 </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">     $  393 </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">       $  665 </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt"> $  120 </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt"> $       — </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt"> $  1,650 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt">  Percentage of total net revenues....................................................... </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">         29% </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">            24% </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">              40% </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">          7% </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">            0% </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">         100% </td> </tr> <tr style="mso-yfti-irow:10"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt"> Operating income (loss)....................................................................... </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">       275 </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">          117 </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">           263 </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">          4 </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">      (381) </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">         278 </td> </tr> <tr style="mso-yfti-irow:11;mso-yfti-lastrow:yes"> <td width="355" valign="top" style= "width:266.25pt;padding:0in 2.35pt 0in 2.35pt">  Operating margin of segment............................................................ </td> <td width="56" valign="top" style= "width:41.8pt;padding:0in 2.35pt 0in 2.35pt">         58% </td> <td width="68" valign="top" style= "width:50.75pt;padding:0in 2.35pt 0in 2.35pt">            30% </td> <td width="75" valign="top" style= "width:55.95pt;padding:0in 2.35pt 0in 2.35pt">              40% </td> <td width="53" valign="top" style= "width:39.55pt;padding:0in 2.35pt 0in 2.35pt">          3% </td> <td width="57" valign="top" style= "width:43.1pt;padding:0in 2.35pt 0in 2.35pt">            * </td> <td width="63" valign="top" style= "width:47.3pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> </table> ____________   <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%" style= "width:100.0%;border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="3%" 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<div> <a name= "_AUC77ee4bbc5aa04c8a981170bf5e304a76"> Note 1.  Basis of Presentation</a>   The condensed consolidated financial statements of Symantec Corporation (“we,” “us,” and “our” refer to Symantec Corporation and all of its subsidiaries) as of July 3, 2009 and April 3, 2009, and for the three months ended July 3, 2009 and July 4, 2008, have been prepared in accordance with the instructions for Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position and results of operations for the interim periods. The condensed consolidated balance sheet as of April 3, 2009, has been derived from the audited consolidated financial statements as adjusted for the retrospective adoption of Financial Accounting Standards Board (“FASB”) Staff Position (“FSP”) APB No. 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) however, it does not include all disclosures required by generally accepted accounting principles. These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 3, 2009. The results of operations for the three months ended July 3, 2009, are not necessarily indicative of the results to be expected for the entire fiscal year. All significant intercompany accounts and transactions have been eliminated.   We have a 52/53-week fiscal accounting year. Unless otherwise stated, references to three months ended in this report relate to fiscal periods ended July 3, 2009 and July 4, 2008. The three months ended July 3, 2009 consisted of 13 weeks, whereas the three months ended July 4, 2008 consisted of 14 weeks. Our 2010 fiscal year consists of 52 weeks and ends on April 2, 2010.   Significant Accounting Policies   There have been no changes in our significant accounting policies for the three months ended July 3, 2009, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 3, 2009.   As of April 4, 2009, we adopted FSP APB No. 14-1. See Note 4 for further details.   Financial Instruments   For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:   Cash and Cash Equivalents.  We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are recognized at fair value. As of July 3, 2009, our cash equivalents consisted of $1.3 billion in money market funds, $320 million in bank securities and deposits, and $25 million in government securities. As of April 3, 2009, our cash equivalents consisted of $389 million in money market funds, $474 million in bank securities and deposits, and $479 million in government securities.   Short-Term Investments.  We classify short-term investments in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain Investments in Debt and Equity Securities. Short-term investments consist of marketable debt or equity securities which are classified as available-for-sale and are recognized at fair value. The determination of fair value is further detailed in Note 2. Our portfolios consist of (1) debt securities which include asset-backed securities, corporate securities and government notes, and (2) marketable equity securities. As of July 3, 2009, our asset-backed securities contractually mature after 10 years and our corporate securities contractually mature within three years. We regularly review our investment portfolio according to FSP FAS 115-1, The Meaning of Other Than Temporary Impairment and Its Application to Certain Investments. We identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include: the length of time and extent to which the fair market value has been lower than the cost basis, the financial condition and near-term prospects of the investee, credit quality, likelihood of recovery, and our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair market value.   Unrealized gains and losses, net of tax, are included in Accumulated other comprehensive income. The amortization of premiums and discounts on the investments, realized gains and losses, and declines in value judged to be other-than-temporary, in accordance with FSP FAS 115-2, Recognition and Presentation of Other Than Temporary Impairments, on available-for-sale debt securities are included in Other income, net. As such, other-than-temporary impairments are determined to be either credit losses or losses due to other factors — credit losses are recognized in our Condensed Consolidated Statements of Operations and other losses are included in Accumulated other comprehensive income. We use the specific-identification method to determine cost in calculating realized gains and losses upon sale of short-term investments.   Equity Investments.  We have made an equity investment in a privately held company whose business is complementary to our business. This investment is accounted for under the cost method of accounting, as we hold less than 20% of the voting stock outstanding and do not exert significant influence over this company. The investment is included in Other long-term assets. We assess the recoverability of this investment by reviewing various indicators of impairment and by determining the fair value of this investment by performing a discounted cash flow analysis of estimated future cash flows. If a decline in value is determined to be other-than-temporary, an impairment would be recognized and included in Other income, net.   Derivative Instruments.  We transact business in various foreign currencies and have foreign currency risks associated with monetary assets and liabilities denominated in foreign currencies. We utilize foreign currency forward contracts to reduce the risks associated with changes in foreign currency exchange rates. Our forward contracts generally have terms of one to six months. We do not use forward contracts for trading purposes. The gains and losses on the contracts are intended to offset the gains and losses on the underlying transactions. Both the changes in fair value of outstanding forward contracts and realized foreign exchange gains and losses are included in Other income, net. Contract fair values are determined based on quoted prices for similar assets or liabilities in active markets using inputs such as LIBOR, currency rates, forward points, and commonly quoted credit risk data. For each fiscal period presented in this report, outstanding derivative contracts and the related gains or losses were not material.   Convertible Senior Notes, Note Hedges and Revolving Credit Facility.  Our convertible senior notes are recorded at cost based upon par value at issuance less a discount for the estimated value of the equity component of the notes, which is amortized through maturity as additional non-cash interest expense. See Note 4 for further details. Debt issuance costs were recorded in Other long-term assets and are being amortized to Interest expense using the effective interest method over five years for the 0.75% Notes and seven years for the 1.00% Notes. In conjunction with the issuance of the notes, we obtained hedges which would provide us with the option to purchase additional common shares at a fixed price from the note holders after conversion. The cost incurred in connection with the note hedge transactions, net of the related tax benefit and the proceeds from the sale of warrants, was included as a net reduction in Additional paid-in capital. Borrowings under our $1 billion senior unsecured revolving credit facility are recognized at cost plus accrued interest based upon stated interest rates.   Property and Equipment   Property and equipment consisted of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="602" valign="top" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="125" colspan="2" valign="top" style= "width:93.55pt;padding:0in 2.35pt 0in 2.35pt">                 As of               </td> </tr> <tr style="mso-yfti-irow:1"> <td width="602" valign="top" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">     July 3,      2009     </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">     April 3,       2009     </td> </tr> <tr style="mso-yfti-irow:2"> <td width="602" valign="top" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="125" colspan="2" valign="top" style= "width:93.55pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="602" valign="bottom" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt"> Computer hardware and software...................................................................................................................................... </td> <td width="61" valign="bottom" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt"> $    1,075 </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt"> $    1,041 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="602" valign="bottom" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt"> Office furniture and equipment.......................................................................................................................................... </td> <td width="61" valign="bottom" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">           206 </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">            201 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="602" valign="bottom" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt"> Buildings.................................................................................................................................................................................. </td> <td width="61" valign="bottom" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">           484 </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">            483 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="602" valign="bottom" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt"> Leasehold improvements..................................................................................................................................................... </td> <td width="61" valign="bottom" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">           270 </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">           247 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="602" valign="top" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">       2,035 </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">        1,972 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="602" valign="bottom" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt"> Less: accumulated depreciation and amortization........................................................................................................ </td> <td width="61" valign="bottom" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">      (1,129) </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">      (1,077) </td> </tr> <tr style="mso-yfti-irow:9"> <td width="602" valign="top" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">           906 </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">            895 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="602" valign="bottom" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt"> Land......................................................................................................................................................................................... </td> <td width="61" valign="bottom" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">             79 </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">             78 </td> </tr> <tr style="mso-yfti-irow:11;mso-yfti-lastrow:yes"> <td width="602" valign="bottom" style= "width:451.15pt;padding:0in 2.35pt 0in 2.35pt"> Property and equipment, net.............................................................................................................................................. </td> <td width="61" valign="bottom" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt"> $       985 </td> <td width="64" valign="bottom" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt"> $       973 </td> </tr> </table>   Comprehensive Income   The components of comprehensive income, net of tax, are as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="608" valign="top" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="118" colspan="2" valign="top" style= "width:88.4pt;padding:0in 2.35pt 0in 2.35pt">   Three Months Ended  </td> </tr> <tr style="mso-yfti-irow:1"> <td width="608" valign="top" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 3,      2009     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2008     </td> </tr> <tr style="mso-yfti-irow:2"> <td width="608" valign="top" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="118" colspan="2" valign="top" style= "width:88.4pt;padding:0in 2.35pt 0in 2.35pt"> (In millions) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="608" valign="bottom" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt"> Net income................................................................................................................................................................................ </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">     $  73 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    $  172 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="608" valign="bottom" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt"> Other comprehensive income: </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:5"> <td width="608" valign="bottom" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt"> Reclassification adjustments................................................................................................................................................ </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            (4) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="608" valign="bottom" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt"> Change in cumulative translation adjustment.................................................................................................................. </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            5 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">             3 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="608" valign="bottom" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt"> Change in unrealized gain on available-for-sale securities, net of tax.......................................................................... </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            3 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">           — </td> </tr> <tr style="mso-yfti-irow:8"> <td width="608" valign="bottom" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt"> Total changes in comprehensive income............................................................................................................................. </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            8 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            (1) </td> </tr> <tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes"> <td width="608" valign="bottom" style= "width:456.3pt;padding:0in 2.35pt 0in 2.35pt"> Comprehensive income.......................................................................................................................................................... </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">     $  81 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    $  171 </td> </tr> </table>   Assets Held for Sale   As part of our ongoing review of our real estate holdings, we determined that certain properties were underutilized. As a result, we have committed to sell properties with a total estimated fair value less cost to sell of approximately $56 million included in Other current assets and no associated liabilities. We expect the sale of the properties to be completed no later than the third quarter of fiscal 2010. SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, provides that a long-lived asset classified as held for sale should be measured at the lower of its carrying amount or fair value less cost to sell.   Subsequent Events Evaluation   Management has reviewed and evaluated material subsequent events from the balance sheet date of July 3, 2009 through the financial statements issue date of August 5, 2009. All appropriate subsequent event disclosures, if any, have been made in these Notes to Condensed Consolidated Financial Statements.   Recently Issued Accounting Pronouncements   In June 2009, the FASB issued SFAS No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles — a replacement of FASB Statement No. 162, which approved the FASB Accounting Standards Codification (“Codification”) as the single source of authoritative United States accounting and reporting standards for all non-governmental entities, except for guidance issued by the SEC. The Codification, which changes the referencing of financial standards, is effective for interim or annual financial periods ending after September 15, 2009. Therefore, beginning with our second quarter of fiscal 2010, all references made to generally accepted accounting principles in the United States (“U.S. GAAP”) will use the new Codification numbering system prescribed by the FASB. As the Codification is not intended to change or alter existing U.S. GAAP, it is not expected to have any impact on our consolidated financial statements.   In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R), which amends the consolidation guidance applicable to variable interest entities (“VIEs”). The scope within the guidance now includes qualifying special-purpose entities. The standard provides revised guidance on (1) determining the primary beneficiary of the VIE, (2) how power is shared, (3) consideration for kick-out, participating and protective rights, (4) reconsideration of the primary beneficiary, (5) reconsideration of a VIE, (6) fees paid to decision makers or service providers, and (7) presentation requirements. The statement is effective as of the first quarter of our fiscal 2011, and early adoption is prohibited. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.   As of April 4, 2009, we adopted SFAS No. 157, Fair Value Measurements, for all non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis. We also adopted FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, which provides guidance on determining other-than-temporary impairments for debt securities, and SFAS No. 165, Subsequent Events. These adoptions did not have a material impact on our consolidated financial statements.   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

Derived from audited financials, as adjusted for the retrospective adoption of FSP APB No. 14-1. See Notes 1 and 4 for further details. As adjusted for the retrospective adoption of FSP APB No. 14-1. See Notes 1 and 4 for further details. As adjusted for the retrospective adoption of FSP APB No. 14-1. See Notes 1 and 4 for further details.