ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

December 30, 

September 23, 

December 24, 

2017

2017

2016

(in thousands, except per share data)

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

GAAP gross profit

$        409,676

$         373,831

$        340,178

GAAP gross profit %

65.8%

64.9%

61.7%

Special items:

Intangible asset amortization 

11,139

11,064

11,755

Accelerated depreciation (1)

—

—

1,178

 Total special items 

11,139

11,064

12,933

 GAAP gross profit excluding special items 

$        420,815

$         384,895

$        353,111

 GAAP gross profit % excluding special items 

67.6%

66.9%

64.1%

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

GAAP operating expenses

$        208,628

$         188,665

$        191,104

Special items:

Intangible asset amortization

995

1,752

2,348

Impairment of long-lived assets (2)

850

42

383

Severance and restructuring 

6,523

5,433

864

Other operating expenses (income), net

(959)

(844)

1,909

  Total special items 

7,409

6,383

5,504

 GAAP operating expenses excluding special items 

$        201,219

$         182,282

$        185,600

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

GAAP net income (loss)

$        (75,015)

$         154,533

$        130,477

Special items:

Intangible asset amortization 

12,134

12,816

14,103

Accelerated depreciation (1)

—

—

1,178

Impairment of long-lived assets (2)

850

42

383

Severance and restructuring 

6,523

5,433

864

Other operating expenses (income), net

(959)

(844)

1,909

Interest and other expense (income), net 

(119)

(84)

(5,052)

 Pre-tax total special items

18,429

17,363

13,385

Other income tax effects and adjustments (3)

(897)

(1,345)

(11,167)

Impact of U.S. tax legislation (4)

243,550

—

—

 GAAP net income excluding special items 

$        186,067

$         170,551

$        132,695

 GAAP net income per share excluding special items: 

Basic

$              0.66

$               0.60

$              0.47

Diluted

$              0.65

$               0.60

$              0.46

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

Basic

281,560

282,170

283,294

Diluted (5)

286,356

286,437

288,106

(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility during the second quarter of fiscal year 2017.

(2) Includes impairment of investments in privately-held companies and other equipment impairment charges.

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

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

(5) Shares used in diluted earnings per share excluding special items differs from GAAP loss per share due to net income on a non-GAAP basis.