ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

March 30,
2019

December 29,
2018

March 31,
2018

(in thousands, except per share data)

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

GAAP gross profit

$

340,831

$

373,048

$

423,946

GAAP gross profit %

62.8

%

64.7

%

65.4

%

Special items:

Intangible asset amortization

5,008

6,868

12,101

Total special items

5,008

6,868

12,101

 GAAP gross profit excluding special items

$

345,839

$

379,916

$

436,047

 GAAP gross profit % excluding special items

63.8

%

65.9

%

67.2

%

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

GAAP operating expenses

$

183,691

$

190,844

$

199,108

Special items:

Intangible asset amortization

756

756

876

Impairment of long-lived assets

—

753

—

Severance and restructuring

1,744

1,179

2,272

Other operating expenses (income), net

—

—

266

 Total special items

2,500

2,688

3,414

 GAAP operating expenses excluding special items

$

181,191

$

188,156

$

195,694

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

GAAP net income (loss)

$

130,613

$

131,892

$

193,627

Special items:

Intangible asset amortization

5,764

7,624

12,977

Impairment of long-lived assets ⁽¹⁾

—

753

—

Severance and restructuring

1,744

1,179

2,272

Other operating expenses (income), net

—

—

266

Interest and other expense (income), net

(857)

(351)

(97)

 Total pre-tax special items

6,651

9,205

15,418

Other income tax effects and adjustments ⁽²⁾

7,506

3,758

151

Impact of U.S. tax effects and adjustments ⁽³⁾

(1,056)

22,082

—

 GAAP net income excluding special items

$

143,714

$

166,937

$

209,196

GAAP net income per share excluding special items:

Basic

$

0.53

$

0.60

$

0.74

Diluted

$

0.52

$

0.60

$

0.73

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

Basic

273,221

276,252

280,850

Diluted

276,610

280,008

285,881

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

(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.