ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

September 29,

June 30, 

September 23,

2018

2018

2017

(in thousands, except per share data)

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

GAAP gross profit

$        430,236

$   418,668

$        373,831

GAAP gross profit %

67.4%

66.1%

64.9%

Special items:

Intangible asset amortization

6,915

11,759

11,064

 Total special items 

6,915

11,759

11,064

 GAAP gross profit excluding special items 

$        437,151

$   430,427

$        384,895

 GAAP gross profit % excluding special items 

68.5%

68.0%

66.9%

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

GAAP operating expenses

$        196,053

$   196,273

$        188,665

Special items:

Intangible asset amortization

773

844

1,752

Impairment of long-lived assets

—

—

42

Severance and restructuring

994

833

5,433

Other operating expenses (income), net

60

(844)

 Total special items 

1,827

1,606

6,383

 GAAP operating expenses excluding special items 

$        194,226

$   194,667

$        182,282

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

GAAP net income (loss)

$        197,423

$   194,172

$        154,533

Special items:

Intangible asset amortization

7,688

12,603

12,816

Impairment of long-lived assets

—

—

42

Severance and restructuring

994

833

5,433

Other operating expenses (income), net

60

(844)

Interest and other expense (income), net

(378)

(941)

(84)

Pre-tax total special items

8,364

12,424

17,363

Other income tax effects and adjustments

4,754

1,194

(1,345)

 GAAP net income excluding special items 

$        210,541

$   207,790

$        170,551

 GAAP net income per share excluding special items: 

Basic

$              0.76

$         0.74

$              0.60

Diluted

$              0.75

$         0.73

$              0.60

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

Basic

278,045

279,304

282,170

Diluted

282,454

283,934

286,437