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CARRERA DE EDUCACIÓN BÁSICA

MARCO ADMINISTRATIVO

B. RECURSOS MATERIALES

4 Paquetes de hojas INEN A

You should read the following selected consolidated financial data together with the information included under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our historical financial statements and related notes included elsewhere in this Annual Report on Form 10-K. The selected consolidated statements of operations data for the fiscal years ended November 3, 2013, October 28, 2012 and October 30,

2011 and the selected balance sheet data as of November 3, 2013 and October 28, 2012 have been derived from audited historical financial statements and related notes included elsewhere in this Annual Report on Form 10-K. The selected consolidated statements of operations data for the fiscal years ended October 31, 2010 and November 1, 2009 and the selected balance sheet data as of October 30, 2011, October 31, 2010 and November 1, 2009 have been derived from audited historical financial statements and related notes not included in this Annual Report on Form 10-K. The historical financial data may not be indicative of our future performance. We adopted a 52-or 53-week fiscal year beginning with our fiscal year 2008. Our fiscal year ends on the Sunday closest to October 31. Our fiscal year 2013 was a 53-week fiscal year.

Summary of Five Year Selected Financial Data

Fiscal Year Ended November 3, 2013 October 28, 2012 October 30, 2011 October 31, 2010 November 1, 2009

(In millions, except per share amounts)

Statement of Operations Data:

Net revenue $ 2,520 $ 2,364 $ 2,336 $ 2,093 $ 1,484

Cost of products sold:

Cost of products sold(1) 1,260 1,164 1,133 1,068 855

Amortization of intangible assets 61 56 56 58 58

Restructuring charges(2) 1 2 — 1 11

Total cost of products sold 1,322 1,222 1,189 1,127 924

Gross margin 1,198 1,142 1,147 966 560

Research and development 398 335 317 280 245

Selling, general and administrative(1) 222 199 220 196 165

Amortization of intangible assets 24 21 22 21 21

Restructuring charges(2) 2 5 4 3 23

Advisory agreement termination fee(3) — — — — 54

Selling shareholder expenses(4) — — — — 4

Total operating expenses 646 560 563 500 512

Income from operations(4)(5) 552 582 584 466 48

Interest expense(6) (2) (1) (4) (34) (77)

Loss on extinguishment of debt (1) — (20) (24) (8)

Other income (expense), net 19 4 1 (2) 1

Income (loss) before taxes 568 585 561 406 (36)

Provision for (benefit from) income taxes(7) 16 22 9 (9) 8

Net income (loss) $ 552 $ 563 $ 552 $ 415 $ (44)

Net income (loss) per share:

Basic $ 2.23 $ 2.30 $ 2.25 $ 1.74 $ (0.20)

Diluted $ 2.19 $ 2.25 $ 2.19 $ 1.69 $ (0.20)

Weighted average shares:

Basic 247 245 245 238 219

Diluted 252 250 252 246 219

Balance Sheet Data (at end of period):

Cash and cash equivalents $ 985 $ 1,084 $ 829 $ 561 $ 472

Total assets $ 3,415 $ 2,862 $ 2,446 $ 2,157 $ 1,970

Long-term debt and capital lease obligations $ 1 $ 2 $ 4 $ 4 $ 233

Total shareholders’ equity $ 2,886 $ 2,419 $ 2,006 $ 1,505 $ 1,040

Other Financial Data:

Cash dividends declared and paid per share $ 0.80 $ 0.56 $ 0.35 $ — $ —

_______________________________________

(1) During the fiscal year ended November 3, 2013, we incurred acquisition related costs of $23 million, of which $11 million was recorded as part of operating expenses and the remainder was recorded as part of cost of products sold. During the fiscal years ended October 28, 2012 and October 30, 2011, acquisition related costs were not material.

(2) Our restructuring charges predominantly represent employee termination benefits. During the fiscal year ended November 3, 2013, we incurred restructuring charges of $3 million, of which $2 million was recorded as part of

operating expenses and the remainder was recorded as part of cost of products sold. During the fiscal year ended October 28, 2012, we incurred restructuring charges of $7 million, all of which $5 million was recorded as part of operating expenses and the remainder was recorded as part of cost of products sold. During the fiscal year ended October 30, 2011, we incurred restructuring charges of $ 4 million all of which was recorded as part of operating expenses. During the fiscal year ended October 31, 2010, we incurred restructuring charges of $4 million, of which $3 million was recorded as part of operating expenses and the remainder was recorded as part of cost of products sold. During the fiscal year ended November 1, 2009, we incurred restructuring charges of $34 million, of which $23 million was recorded as part of operating expenses and the remainder was recorded as part of cost of products sold.

(3) The advisory agreement among the Company and investment funds affiliated with each of Kohlberg Kravis Roberts and Co., and Silver Lake Partners, together referred to as the Sponsors was terminated pursuant to its terms upon completion of our initial public offering in August 2009, for a termination fee of $54 million.

(4) We recorded $4 million in selling shareholder expenses, in connection with the IPO, on behalf of the selling shareholders in the offering. (5) Includes share-based compensation expense of $77 million for the fiscal year ended November 3, 2013, $53 million for the fiscal year ended

October 28, 2012, $38 million for the fiscal year ended October 30, 2011, $25 million for the fiscal year ended October 31, 2010 and $12 million for the fiscal year ended November 1, 2009.

(6) Interest expense for the fiscal years ended November 3, 2013 and October 28, 2012 includes commitment fees for the $300 million unsecured revolving credit facility and amortization expense of related debt issuance costs. Interest expense for the fiscal years ended October 30, 2011, October 31, 2010 and November 1, 2009 includes interest expense on our 10 1/8% Senior Notes due 2013, or our senior notes, and our Floating Rate Notes due 2013, or our floating rate notes, both of which were fully redeemed during the first quarter of fiscal year 2010, and our 11 7/8% Senior Subordinated Notes due 2015, or senior subordinated notes, which were fully redeemed during the first quarter of fiscal year 2011.

(7) During fiscal year 2013, the provision for income taxes was $16 million. The decrease from fiscal year 2012 is primarily attributable to a benefit of $2 million from the recognition of previously unrecognized tax benefits as a result of the expiration of the statute of limitations for certain audit periods, a benefit of $3 million from the enactment of the American Taxpayer Relief Act of 2012, which was signed into law on January 2, 2013, retroactively extending the U.S. Federal Research and Development tax credit from January 1, 2012 to December 31, 2013, and an additional $1 million decrease in tax provision primarily due to a change in the jurisdictional mix of income and expense. In fiscal year 2012, the provision for income taxes was $22 million. The increase from fiscal year 2011 is primarily attributable to an increase in worldwide income and a change in the jurisdictional mix of income and expense. The provision for income taxes for fiscal year 2011 included a $3 million tax benefit from the write-up of deferred tax assets from U.S. legislation retroactively reinstating the research and development tax credit and a $3 million tax benefit from a change in estimate related to research and development tax credits. In fiscal year 2010, we recorded an income tax benefit totaling $9 million. The income tax benefit is associated with the release of $29 million of deferred tax asset valuation allowances, mainly associated with the Company irrevocably calling our senior subordinated notes for redemption in October 2010, partially offset by the write-off of $6 million of deferred tax assets resulting from the grant of Malaysia tax incentive status, and an increase in overall tax provision due to an increase in worldwide taxable income.

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