CONTRACTUAL CASH FLOWS CRITICAL ACCOUNTING ESTIMATES The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The SEC has defined critical accounting policies as those that are both most important to the portrayal of our financial condition and results and which require our most difficult, complex or subjective judgments or estimates. Based on this definition, we believe our critical accounting policies include the policies of revenue recognition, allowance for doubtful accounts, inventory valuation, business combinations, valuation of long-lived assets, share-based compensation, income taxes, goodwill and intangibles, and loss contingencies. On an ongoing basis, we evaluate the judgments and estimates underlying all of our accounting policies. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures, and reported amounts of revenues and expenses. These estimates and assumptions are based on our best judgments. We evaluate our estimates and assumptions using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Page 80 Skyworks / Annual Report 2011 (1) Cash premiums related to the “if converted” value of the 2007 Convertible Notes that exceed aggregate principal balance using the closing stock price of $17.96 on September 30, 2011. The actual amount of the cash premium will be calculated based on the 20 day average stock price prior to maturity. A $1.00 change in our stock price would change the “if converted” value of the cash premium of the total aggregate principle amount of the remaining convertible notes by approximately $2.8 million. (2) Other commitments consist of contractual license and royalty payments, and other purchase obligations. (3) Contingent consideration related to business combinations is recorded at fair value and actual results could differ. (4) Other long-term liabilities includes our gross unrecognized tax benefits, as well as executive deferred compensation which are both classified as beyond five years due to the uncertain nature of the commitment. (5) Amounts do not include potential cash payments for the pending acquisition of AATI. Following is a summary of our contractual payment obligations related to our consolidated debt, contingent consideration, operating leases, other commitments and long-term liabilities at September 30, 2011 (see Notes 9 and 13 to the Consolidated Financial Statements contained this Annual Report), (in thousands): Payments Due By Period Obligation Total Less Than 1 Year 1-3 years 3-5 Years Thereafter Short-term debt obligations .......... $ 26,677 $ 26,677 $ — $ — $ — Cash premium on convertible notes due March 2012(1) .................. 23,558 23,558 — — — Other commitments(2) .............. 5,170 3,398 1,772 — — Operating lease obligations .......... 37,788 8,247 13,819 9,780 5,942 Contingent consideration for business combinations(3) ................. 59,400 58,400 1,000 — — Other long-term liabilities(4) ......... 34,199 2,683 769 146 30,601 Total(5) ........................ $186,792 $122,963 $17,360 $9,926 $36,543