ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

September 28, 2019

June 29, 2019

September 29, 2018

(in thousands, except per share data)

Reconciliation of GAAP gross profit to GAAP gross profit excluding special items:

GAAP gross profit

$                    343,323

$         356,391

$                    430,236

GAAP gross profit %

64.4%

64.0%

67.4%

Special items:

Intangible asset amortization

3,111

4,038

6,915

 Total special items 

3,111

4,038

6,915

 GAAP gross profit excluding special items 

$                    346,434

$         360,429

$                    437,151

 GAAP gross profit % excluding special items 

65.0%

64.8%

68.5%

Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items:

GAAP operating expenses

$                    187,319

$         182,820

$                    196,053

Special items:

Intangible asset amortization

756

756

773

Severance and restructuring

1,434

1,715

994

Other operating expenses (income), net

25

83

60

 Total special items 

2,215

2,554

1,827

 GAAP operating expenses excluding special items 

$                    185,104

$         180,266

$                    194,226

Reconciliation of GAAP net income (loss) to GAAP net income excluding special items:

GAAP net income (loss)

$                    140,156

$         367,558

$                    197,423

Special items:

Intangible asset amortization

3,867

4,794

7,688

Severance and restructuring

1,434

1,715

994

Other operating expenses (income), net

25

83

60

Interest and other expense (income), net

(207)

(2,980)

(378)

Total pre-tax special items

5,119

3,612

8,364

Other income tax effects and adjustments (1)

(3,506)

(11,271)

4,754

Impact of U.S. tax legislation (2)

-

47,703

-

Impact of income tax audit settlement (3)

-

(251,599)

-

GAAP net income excluding special items

$                    141,769

$         156,003

$                    210,541

GAAP net income per share excluding special items:

Basic

$                          0.52

$               0.57

$                          0.76

Diluted

$                          0.52

$               0.57

$                          0.75

Shares used in the calculation of earnings per share excluding special items:

Basic

271,388

272,382

278,045

Diluted

274,436

275,834

282,454

(1) Includes tax effect of pre-tax special items and miscellaneous tax adjustments.

(2) Includes effect of U.S. tax legislation enacted on December 22, 2017.

(3) Includes effect of income tax audit settlements.