ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

December 24, 

September 24, 

December 26, 

2016

2016

2015

(in thousands, except per share data)

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

GAAP gross profit

$        340,178

$         345,732

$        292,169

GAAP gross profit %

61.7%

61.6%

57.2%

Special items:

Intangible asset amortization 

11,755

12,602

14,734

Accelerated depreciation (1)

1,178

1,178

2,032

 Total special items 

12,933

13,780

16,766

  GAAP gross profit excluding special items 

$        353,111

$         359,512

$        308,935

  GAAP gross profit % excluding special items 

64.1%

64.0%

60.5%

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

GAAP operating expenses

$        191,104

$         173,659

$        202,636

Special items:

Intangible asset amortization

2,348

2,443

3,538

Impairment of long-lived assets (2)

383

6,134

1,950

Severance and restructuring 

864

9,965

10,652

Other operating expenses (income), net  (3)

1,909

(28,481)

(247)

  Total special items 

5,504

(9,939)

15,893

  GAAP operating expenses excluding special items 

$        185,600

$         183,598

$        186,743

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

GAAP net income (loss)

$        130,477

$         137,614

$          67,469

Special items:

Intangible asset amortization 

14,103

15,045

18,272

Accelerated depreciation (1)

1,178

1,178

2,032

Impairment of long-lived assets (2)

383

6,134

1,950

Severance and restructuring 

864

9,965

10,652

Other operating expenses (income), net (3)

1,909

(28,481)

(247)

Interest and other expense (income), net (4)

(5,052)

(471)

595

  Pre-tax total special items 

13,385

3,370

33,254

Other income tax effects and adjustments (5)

(11,167)

(2,754)

(7,903)

 GAAP net income excluding special items 

$        132,695

$         138,230

$          92,820

 GAAP net income per share excluding special items: 

Basic

$              0.47

$               0.49

$              0.33

Diluted

$              0.46

$               0.48

$              0.32

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

Basic

283,294

283,633

285,526

Diluted

288,106

288,574

290,521

(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility.

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

(3) Includes gain on sale of micro-electromechanical systems (MEMS) business line during the first quarter of fiscal year 2017.

(4) Includes gain on sale of shares received for the sale of the wafer manufacturing facility in San Antonio, Texas.

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