Schedule Reconciling Selected Non-GAAP Financial Measures

(unaudited, in millions, except for per share amounts)

Quarter Ended

Six Months Ended

Apr 2,
2017

Jan 1,
2017

Apr 3,
2016

Apr 2,
2017

Apr 3,
2016

GAAP and Non-GAAP gross profit

$

284.1

$

276.5

$

200.6

$

560.6

$

388.5

Manufacturing profit in acquired inventory (1)

—

—

66.2

—

66.2

Inventory write-offs from restructuring activities (2)

—

—

4.0

—

4.0

Non-GAAP gross profit

$

284.1

$

276.5

$

270.8

$

560.6

$

458.7

GAAP operating income (loss)

$

69.1

$

55.8

$

(97.9)

$

124.9

$

(61.3)

Adjustments to GAAP gross profit

—

—

70.2

—

70.2

Restructuring, severance, facilities and other special charges (1)

5.9

2.4

51.9

8.3

53.7

Amortization of intangible assets (2)

46.5

45.5

45.3

92.1

70.7

Stock based compensation (3)

15.6

28.3

24.4

43.9

38.4

Acquisition and divestiture related costs (4)

0.4

0.7

22.3

1.1

28.3

Non-GAAP operating income

$

137.5

$

132.7

$

116.2

$

270.3

$

200.0

GAAP net income (loss)

$

41.2

$

19.5

$

(212.0)

$

60.6

$

(188.3)

Adjustments to GAAP gross profit and operating income

68.4

76.9

214.1

145.4

261.3

Adjustment to gain on divestiture (4)

—

1.2

—

1.2

—

Credit facility issuance and debt extinguishment costs (5)

2.4

2.1

78.2

4.5

78.9

Fair value change in foreign tax liabilities (6)

1.1

(1.0)

3.0

0.1

3.0

Income tax effect on non-GAAP adjustments (7)

(6.9)

1.1

(8.6)

(5.8)

(10.9)

Non-GAAP net income

$

106.2

$

99.8

$

74.7

$

206.0

$

144.0

GAAP diluted earnings (loss) per share

$

0.35

$

0.17

$

(1.93)

$

0.52

$

(1.85)

Effect of non-GAAP adjustments on diluted earnings per share

$

0.56

$

0.69

$

2.60

$

1.25

$

3.24

Non-GAAP diluted earnings per share

$

0.91

$

0.86

$

0.67

$

1.77

$

1.39

Weighted-average diluted shares used in calculating non-GAAP diluted earnings per share

117.0

116.3

111.6

116.6

103.8

Operating cash flow

$

121.5

$

77.6

$

5.4

$

199.1

$

88.3

Payments for capital expenditures

(16.0)

(10.5)

(12.5)

(26.5)

(23.1)

Free cash flow (8)

$

105.5

$

67.1

$

(7.1)

$

172.6

$

65.2