ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

December 28, 2019

September 28, 2019

December 29, 2018

(in thousands, except per share data)

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

GAAP gross profit

$                         360,524

$                           343,323

$                         373,048

GAAP gross profit %

65.4%

64.4%

64.7%

Special items:

Intangible asset amortization

3,111

3,111

6,868

 Total special items 

3,111

3,111

6,868

 GAAP gross profit excluding special items 

$                         363,635

$                           346,434

$                         379,916

 GAAP gross profit % excluding special items 

66.0%

65.0%

65.9%

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

GAAP operating expenses

$                         191,468

$                           187,319

$                         190,844

Special items:

Intangible asset amortization

756

756

756

Impairment of long-lived assets

—

—

753

Severance and restructuring

2,728

1,434

1,179

Other operating expenses (income), net

(1)

25

—

 Total special items 

3,483

2,215

2,688

 GAAP operating expenses excluding special items 

$                         187,985

$                           185,104

$                         188,156

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

GAAP net income (loss)

$                         146,050

$                           140,156

$                         131,892

Special items:

Intangible asset amortization

3,867

3,867

7,624

Impairment of long-lived assets

—

—

753

Severance and restructuring

2,728

1,434

1,179

Other operating expenses (income), net

(1)

25

—

Interest and other expense (income), net

(1,230)

(207)

(351)

Total pre-tax special items

5,364

5,119

9,205

Other income tax effects and adjustments ⁽¹⁾

317

(3,506)

3,758

Impact of U.S. tax legislation ⁽²⁾

—

—

22,082

GAAP net income excluding special items

$                         151,731

$                           141,769

$                         166,937

GAAP net income per share excluding special items:

Basic

$                               0.56

$                                 0.52

$                               0.60

Diluted

$                               0.56

$                                 0.52

$                               0.60

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

Basic

270,330

271,388

276,252

Diluted

273,269

274,436

280,008

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

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