ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

March 28,
2020

December 28,
2019

March 30,
2019

(in thousands, except per share data)

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

GAAP gross profit

$

366,437

$

360,524

$

340,831

GAAP gross profit %

65.2

%

65.4

%

62.8

%

Special items:

Intangible asset amortization

3,111

3,111

5,008

Cost of COVID-19 response programs

2,025

—

—

Total special items

5,136

3,111

5,008

 GAAP gross profit excluding special items

$

371,573

$

363,635

$

345,839

 GAAP gross profit % excluding special items

66.1

%

66.0

%

63.8

%

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

GAAP operating expenses

$

183,090

$

191,468

$

183,691

Special items:

Intangible asset amortization

756

756

756

Severance and restructuring

523

2,728

1,744

Other operating expenses (income), net

1,077

⁽¹⁾

(1)

—

 Total special items

2,356

3,483

2,500

 GAAP operating expenses excluding special items

$

180,734

$

187,985

$

181,191

Reconciliation of GAAP net income to GAAP net income excluding special items:

GAAP net income

$

161,190

$

146,050

$

130,613

Special items:

Intangible asset amortization

3,867

3,867

5,764

Cost of COVID-19 response programs

2,025

—

—

Severance and restructuring

523

2,728

1,744

Other operating expenses (income), net

1,077

⁽¹⁾

(1)

—

Interest and other expense (income), net

(587)

(1,230)

(857)

 Total pre-tax special items

6,905

5,364

6,651

Other income tax effects and adjustments ⁽²⁾

(2,101)

317

7,506

Impact of U.S. tax legislation ⁽³⁾

—

—

(1,056)

 GAAP net income excluding special items

$

165,994

$

151,731

$

143,714

 GAAP net income per share excluding special items:

Basic

$

0.62

$

0.56

$

0.53

Diluted

$

0.61

$

0.56

$

0.52

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

Basic

269,003

270,330

273,221

Diluted

271,579

273,269

276,610

(1) Includes approximately $0.5 million of acquisition-related costs and $0.5 million of cost related to COVID-19 response programs.

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

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