ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

Year Ended

June 29,

March 30, 

June 30,

June 29,

June 30,

2019

2019

2018

2019

2018

(in thousands, except per share data)

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

GAAP gross profit

$ 356,391

$ 340,831

$ 418,668

$ 1,500,506

$ 1,626,121

GAAP gross profit %

64.0%

62.8%

66.1%

64.8%

65.6%

Special items:

Intangible asset amortization 

4,038

5,008

11,759

22,829

46,064

 Total special items 

4,038

5,008

11,759

22,829

46,064

  GAAP gross profit excluding special items 

$ 360,429

$ 345,839

$ 430,427

$ 1,523,335

$ 1,672,185

  GAAP gross profit % excluding special items 

64.8%

63.8%

68.0%

65.8%

67.4%

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

GAAP operating expenses

$ 182,820

$ 183,691

$ 196,273

$    753,408

$    792,674

Special items:

Intangible asset amortization

756

756

844

3,041

4,467

Impairment of long-lived assets 

-

-

-

753

892

Severance and restructuring

1,715

1,744

833

5,632

15,060

Other operating expenses (income), net

83

-

143

(1,607)

 Total special items 

2,554

2,500

1,605

9,569

18,812

 GAAP operating expenses excluding special items 

$ 180,266

$ 181,191

$ 194,667

$    743,839

$    773,862

Reconciliation of GAAP net income to GAAP net income excluding special items:

GAAP net income

$ 367,558

$ 130,613

$ 194,172

$    827,486

$    467,318

Special items:

Intangible asset amortization

4,794

5,764

12,603

25,870

50,531

Impairment of long-lived assets 

-

-

-

753

892

Severance and restructuring

1,715

1,744

833

5,632

15,060

Other operating expenses (income), net

83

-

(71)

143

(1,607)

Interest and other expense (income), net 

(2,980)

(857)

(941)

(4,565)

(1,243)

 Pre-tax total special items 

3,612

6,651

12,424

27,833

63,633

Other income tax effects and adjustments (1)

(11,271)

7,506

1,194

4,747

(898)

Impact of U.S. tax legislation (2)

47,703

(1,056)

-

68,729

243,550

Impact of income tax audit settlements (3)

(251,599)

-

-

(251,599)

-

 GAAP net income excluding special items 

$ 156,003

$ 143,714

$ 207,790

$    677,196

$    773,603

 GAAP net income per share excluding special items: 

Basic

$       0.57

$       0.53

$       0.74

$          2.46

$          2.75

Diluted

$       0.57

$       0.52

$       0.73

$          2.43

$          2.71

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

Basic

272,382

273,221

279,304

274,966

280,979

Diluted

275,834

276,610

283,934

278,777

285,674

(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.

(3) Includes effect of income tax audit settlements.