ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

March 31, 

December 30, 

March 25, 

2018

2017

2017

(in thousands, except per share data)

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

GAAP gross profit

$   423,946

$        409,676

$   366,904

GAAP gross profit %

65.4%

65.8%

63.1%

Special items:

Intangible asset amortization 

12,101

11,139

11,064

Accelerated depreciation (1)

—

—

1,103

 Total special items 

12,101

11,139

12,167

  GAAP gross profit excluding special items 

$   436,047

$        420,815

$   379,071

  GAAP gross profit % excluding special items 

67.2%

67.6%

65.2%

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

GAAP operating expenses

$   199,108

$        208,628

$   192,652

Special items:

Intangible asset amortization

876

995

2,348

Impairment of long-lived assets (2)

—

850

1,000

Severance and restructuring 

2,272

6,523

450

Other operating expenses (income), net

266

(959)

1,704

  Total special items 

3,414

7,409

5,502

  GAAP operating expenses excluding special items 

$   195,694

$        201,219

$   187,150

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

GAAP net income (loss)

$   193,627

$        (75,015)

$   140,213

Special items:

Intangible asset amortization 

12,977

12,134

13,412

Accelerated depreciation (1)

—

—

1,103

Impairment of long-lived assets (2)

—

850

1,000

Severance and restructuring 

2,272

6,523

450

Other operating expenses (income), net

266

(959)

1,704

Interest and other expense (income), net 

(97)

(119)

(48)

 Pre-tax total special items

15,418

18,429

17,621

Other income tax effects and adjustments (3)

151

(897)

1,957

Impact of U.S. tax legislation (4)

—

243,550

—

 GAAP net income excluding special items 

$   209,196

$        186,067

$   159,791

 GAAP net income per share excluding special items: 

Basic

$         0.74

$              0.66

$         0.56

Diluted

$         0.73

$              0.65

$         0.56

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

Basic

280,850

281,560

282,903

Diluted (5)

285,881

286,356

287,882

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

(2) Includes impairment of investments in privately-held companies.

(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 during second quarter of fiscal year 2018.