Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Twelve Months Ended

Sept. 27,

Sept. 28,

Sept. 27,

Sept. 28,

2014

2013

2014

2013

GAAP Operating Income

$      61,537

$      44,688

$    199,682

$   157,629

GAAP operating margin

3.6%

3.0%

3.2%

2.7%

Adjustments

Stock compensation expense (1)

5,519

4,148

18,789

17,524

Amortization of intangible assets

1,072

474

3,871

1,896

Distressed customer charges (2)

1,856

768

2,239

6,180

Restructuring, acquisition and integration costs

3,979

4,647

12,550

24,910

Recovery of contingency item (3)

(2,686)

-

(2,562)

-

Gain on sales of long-lived assets

-

-

(530)

(23,361)

Asset impairments

-

1,000

-

2,100

Non-GAAP Operating Income

$      71,277

$      55,725

$    234,039

$   186,878

Non-GAAP operating margin

4.2%

3.7%

3.8%

3.2%

GAAP Net Income

$    132,503

$      38,801

$    197,165

$     79,351

Adjustments:

Operating income adjustments (see above)

9,740

11,037

34,357

29,249

Loss on repurchases of debt (4)

3,587

-

11,779

1,401

Loss on dedesignation of interest rate swap (5)

-

-

-

14,903

Litigation settlements (6)

-

(2,421)

(1,571)

(2,421)

Nonrecurring tax items

(92,416)

(7,537)

(69,260)

902

Non-GAAP Net Income

$      53,414

$      39,880

$    172,470

$   123,385

GAAP Net Income Per Share:

Basic

$          1.61

$          0.46

$          2.38

$         0.96

Diluted

$          1.52

$          0.44

$          2.27

$         0.93

Non-GAAP Net Income Per Share:

Basic

$          0.65

$          0.48

$          2.08

$         1.49

Diluted

$          0.61

$          0.46

$          1.99

$         1.44

Weighted-average shares used in computing per share amounts:

Basic

82,528

83,790

82,872

82,834

Diluted

86,997

87,201

86,731

85,403

(1)

Stock compensation expense was as follows: 

Three Months Ended

Twelve Months Ended

Sept. 27,

Sept. 28,

Sept. 27,

Sept. 28,

2014

2013

2014

2013

Cost of sales

$        1,986

$        1,362

$        5,850

$       5,464

Selling, general and administrative

3,491

2,767

12,860

11,942

Research and development

42

19

79

118

  Total

$        5,519

$        4,148

$      18,789

$     17,524

(2)

Relates to inventory and bad debt reserves / recoveries associated with distressed customers.

(3)

Represents a non-recurring contingency that the Company resolved favorably.

(4)

Represents a loss, including write-off of unamortized debt issuance costs, on debt redeemed or repurchased prior to maturity.

(5)

Represents a non-cash loss resulting from dedesignation of an interest rate swap.

(6)

Represents cash received in connection with a litigation settlement.