Results for the Years Ending (in millions)
	Oct 27, 2013	Oct 28, 2012	Oct 30, 2011
Net sales	$ 7,509	$ 8,719	$ 10,517
Less: Cost of goods sold	4,518	5,406	6,157
Gross profit	2,991	3,313	4,360
Sales, general and administrative	469	595	469
Research and development (R&D)	1,320	1,237	1,118
Restructuring, impairment, and amortization	63	168
Purchased in-process R&D
Other operating expenses	707	902	375
Total operating expenses	2,559	2,902	1,962
Operating profit (loss)	432	411	2,398
Other income (expenses), net excluding interest expense	13		39
Earnings (loss) before interest and taxes	445	411	2,437
Interest expense	95	96	59
Earnings (loss) before taxes	350	316	2,378
Provision for (benefit from) income taxes	94	207	452
Earnings (loss) after taxes	256	108	1,926
Extraordinary items, net
Discontinued operations, net
Cumulative effect of changes in accounting principles, net
Other after-tax income (loss), net
Net profit (loss)	$ 256	$ 109	$ 1,926
Basic earnings per common share

1) Discuss the changes that occurred in four separate accounts. Written analysis should be 3 or 4 paragraphs, but no more than 4 paragraphs. I have provided some ideas of accounts to discuss. Remember to refer to back to the MD&A and notes to the financial statements to understand WHY the changes occurred.

Ideas for discussion

• Sales
• Gross profit margin
• Operating profit margin
• R&D expense
• Selling, general and administrative (SG&A).
• Impairment charges
• Other income & expenses
• Effective tax rate
• Net profit margin