Activity and liability balances related to the Company’s restructuring actions are as follows (in thousands): NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share includes the dilutive effect of equity based awards and the 2007 Convertible Notes using the treasury stock method. Equity based awards exercisable for approximately 2.0 million, 4.6 million, and 16.5 million shares were outstanding but not included in the computation of earnings per share for the fiscal year ended September 30, 2011, October 1, 2010 and October 2, 2009, respectively, as their effect would have been anti- dilutive. In accordance with ASC 280- Segment Reporting (“ASC 280”), the Company has one reportable operating segment which designs, develops, manufactures and markets proprietary semiconductor products, including 18. SEGMENT INFORMATION AND CONCENTRATIONS Page 119 Skyworks / Annual Report 2011 Facility Closings License and Software Write-offs and Other Workforce Reductions Asset Impairments Total Charged to costs and expenses ...... $1,967 $3,892 $ 4,507 $ 5,616 $15,982 Other .......................... 9 (368) 161 — (198) Non-cash items .................. — (955) — (5,616) (6,571) Cash payments ................... (766) (983) (4,185) — (5,934) Restructuring balance, October 2, 2009 ......................... 1,210 1,586 483 — 3,279 Other .......................... 450 248 (247) — 451 Cash payments ................... (648) (657) (236) — (1,541) Restructuring balance, October 1, 2010 ......................... 1,012 1,177 — — 2,189 Charged to costs and expenses ...... — — 2,363 — 2,363 Other .......................... — — 328 — 328 Cash payments ................... (193) (470) (2,189) — (2,852) Restructuring balance, September 30, 2011 ......................... $ 819 $ 707 $ 502 $ — $ 2,028 17. EARNINGS PER SHARE Fiscal Years Ended September 30, 2011 October 1, 2010 October 2, 2009 (In thousands, except per share amounts) Net income ........................................ $226,585 $137,294 $ 94,983 Weighted average shares outstanding — basic ............ 182,879 175,020 167,047 Effect of dilutive equity based awards .................. 6,019 5,928 2,093 Dilutive effect of convertible debt ...................... 1,769 1,790 523 Weighted average shares outstanding — diluted .......... 190,667 182,738 169,663 Net income per share — basic ......................... $ 1.24 $ 0.78 $ 0.57 Net income per share — diluted ....................... $ 1.19 $ 0.75 $ 0.56