ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

December 29,
 2018

September 29,
 2018

December 30,
 2017

(in thousands, except per share data)

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

GAAP gross profit

$

373,048

$

430,236

$

409,676

GAAP gross profit %

64.7

%

67.4

%

65.8

%

Special items:

Intangible asset amortization

6,868

6,915

11,139

Total special items

6,868

6.915

11,139

 GAAP gross profit excluding special items

$

379,916

$

437.151

$

420,815

 GAAP gross profit % excluding special items

65.9

%

68.5

%

67.6

%

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

GAAP operating expenses

$

190,844

$

196,053

$

208,628

Special items:

Intangible asset amortization

756

773

995

Impairment of long-lived assets

753

—

850

Severance and restructuring

1,179

994

6,523

Other operating expenses (income), net

—

60

(959)

 Total special items

2,688

1.827

7,409

 GAAP operating expenses excluding special items

$

188,156

$

194.226

$

201,219

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

GAAP net income (loss)

$

131,892

$

197,423

$

(75,015)

Special items:

Intangible asset amortization

7,624

7,688

12,134

Impairment of long-lived assets ⁽¹⁾

753

—

850

Severance and restructuring

1,179

994

6,523

Other operating expenses (income), net

—

60

(959)

Interest and other expense (income), net

(351)

(378)

(119)

 Total pre-tax special items

9,205

8,364

18,429

Other income tax effects and adjustments ⁽²⁾

3,758

4,754

(897)

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

22,082

—

243,550

 GAAP net income excluding special items

$

166,937

$

210,541

$

186,067

 GAAP net income per share excluding special items:

Basic

$

0.60

$

0.76

$

0.66

Diluted

$

0.60

$

0.75

$

0.65

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

Basic

276,252

278,045

281,560

Diluted ⁽⁴⁾

280,008

282,454

286,356

(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.

(4) 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.