Note 4. Supplemental Financial Information (in thousands)


	July 28, 2012			January 28, 2012
Inventories:
Work-in-process	$	160,575		$	190,779
Finished goods		185,137			163,340

Inventories	$	345,712		$	354,119


	July 28, 2012			January 28, 2012
Property and equipment, net:
Machinery and equipment	$	510,320		$	489,481
Buildings		144,596			144,596
Computer software		86,819			81,852
Land		69,246			69,246
Building improvements		42,200			42,083
Leasehold improvements		38,879			37,237
Furniture and fixtures		22,840			24,450
Construction in progress		10,409			9,846

		925,309			898,791
Less: Accumulated depreciation and amortization		(544,155	)		(514,990	)

Property and equipment, net	$	381,154		$	383,801


	July 28, 2012			January 28, 2012
Other non-current assets:
Technology and other licenses	$	46,384		$	50,212
Deferred tax assets		30,966			31,064
Deposits		12,082			11,532
Investments in privately held companies		11,676			6,309
Deferred compensation		2,910			5,419
Other		5,578			3,610

Other non-current assets	$	109,596		$	108,146


	July 28, 2012			January 28, 2012
Accrued liabilities:
Accrued rebates	$	49,632		$	24,420
Accrued royalties		13,160			16,896
Accrued legal expense		12,226			13,999
Technology license obligations		8,963			5,250
Customer advances for NRE services		4,284			2,541
Other		22,679			24,549

Accrued liabilities	$	110,944		$	87,655


	July 28, 2012			January 28, 2012
Other long-term liabilities:
Technology license obligations	$	9,471		$	11,255
Long-term accrued employee compensation		9,930			10,059
Other		9,688			11,154

Other long-term liabilities	$	29,089		$	32,468


	July 28, 2012			January 28, 2012
Accumulated other comprehensive income:
Unrealized gain on marketable securities	$	4,575		$	3,702
Unrealized loss on auction rate securities		(1,397	)		(1,285	)
Unrealized loss on cash flow hedges		(1,800	)		(1,641	)

Accumulated other comprehensive income	$	1,378		$	776

Net income per share:

The Company reports both basic net income per share, which is based on the weighted average number of common shares outstanding, and diluted net income per share, which is based on the weighted average number of common shares outstanding and potentially dilutive common shares. The computations of basic and diluted net income per share are presented in the following table (in thousands, except per share amounts):


	Three Months Ended				Six Months Ended
	July 28, 2012		July 30, 2011		July 28, 2012		July 30, 2011
Numerator:
Net income	$	93,074	$	192,392	$	187,617	$	339,253

Denominator:
Weighted average common shares outstanding		562,362		608,511		571,193		623,728
Effect of dilutive securities:
Common share-based awards		7,963		14,621		11,339		16,408

Weighted average shares — diluted		570,325		623,132		582,532		640,136

Net income per share:
Basic	$	0.17	$	0.32	$	0.33	$	0.54

Diluted	$	0.16	$	0.31	$	0.32	$	0.53


	Three Months Ended				Six Months Ended
	July 28, 2012		July 30, 2011		July 28, 2012		July 30, 2011
Anti-dilutive potential common shares:
Weighted average shares outstanding from stock options		29,488		22,447		26,553		19,218

Weighted-average exercise price:	$	17.52	$	18.59	$	17.86	$	19.19

Anti-dilutive potential common shares for stock options are excluded from the calculation of diluted earnings per share for the periods reported above because their exercise price exceeded the average market price during the period. The anti-dilutive shares reported above also include shares from stock options that contain market conditions for vesting since the market value of the Company’s stock as of July 28, 2012 and July 30, 2011 was lower than the required market condition. For the three and six months ended July 28, 2012, there were 3.1 million anti-dilutive shares from stock options that contain market conditions. For the corresponding three and six months ended July 30, 2011, there were 3.1 million and 1.6 million anti-dilutive shares, respectively, from stock options that contain market conditions. See Note 11 – “Share-Based Compensation” for additional details.