Summary of Schedule Reconciling Selected Non-GAAP Financial Measures

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

Quarter Ended December 31, 2017

GAAP

Non-GAAP
Adjustments

Non-GAAP

Net sales

$

468.7

$

—

$

468.7

Gross profit

$

288.7

$

7.6

$

296.3

Operating income

$

59.5

$

91.3

$

150.8

Net income

$

47.9

$

72.2

$

120.1

Diluted earnings per share

$

0.40

$

0.61

$

1.01

Consolidated Condensed Statements of Income

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

Quarter Ended

Dec 31,
2017

Oct 1,
2017

Jan 1,
2017

Net sales

$

468.7

$

475.3

$

435.5

Cost of sales

180.0

171.2

159.0

Gross profit

$

288.7

$

304.1

$

276.5

Operating expenses

Selling, general and administrative

$

83.0

$

87.3

$

89.8

Research and development

89.0

87.3

82.3

Amortization of intangible assets

50.3

50.1

45.5

Restructuring, severance and facilities charges

5.5

4.0

2.4

Acquisition and divestiture related costs

1.4

—

0.7

  Total operating expenses

$

229.2

$

228.7

$

220.7

Operating income

$

59.5

$

75.4

$

55.8

Interest and other expense, net

(25.2)

(22.1)

(27.2)

Income before income taxes

$

34.3

$

53.3

$

28.6

Provision for (benefit from) income taxes

(13.6)

(48.7)

9.1

Net income

$

47.9

$

102.0

$

19.5

Earnings per share

Basic

$

0.41

$

0.88

$

0.17

Diluted

$

0.40

$

0.87

$

0.17

Weighted-average common shares outstanding

Basic

116.9

115.3

114.0

Diluted

118.9

117.7

116.3