ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL EXPENSE ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

September 28,

June 29,

September 29,

2013

2013

2012

(in thousands, except per share data)

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

GAAP gross profit

$        347,196

$ 371,399

$        385,691

GAAP gross profit %

59.3%

61.1%

61.9%

Special expense items:

      Intangible asset amortization

8,092

7,777

9,454

                     Total special expense items

8,092

7,777

9,454

 GAAP gross profit excluding special expense items 

$        355,288

$ 379,176

$        395,145

 GAAP gross profit % excluding special expense items 

60.7%

62.3%

63.4%

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

GAAP operating expenses

$        218,587

$ 220,309

$        220,288

Special expense (income) items:

      Intangible asset amortization

3,436

3,670

4,049

      Impairment of long-lived assets 

-

-

2,707

     Severance and restructuring (1) 

5,547

442

-

     Other operating expenses (income), net (2) 

2,272

2,105

415

                     Total special expense items

11,255

6,217

7,171

 GAAP operating expenses excluding special expense items 

$        207,332

$ 214,092

$        213,117

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

GAAP net income

$        103,120

$ 119,014

$        127,888

Special expense (income) items:

      Intangible asset amortization

11,528

11,447

13,503

      Impairment of long-lived assets 

-

-

2,707

     Severance and restructuring (1) 

5,547

442

-

     Other operating expenses (income) , net (2) 

2,272

2,105

415

     Interest and other expense, net (3) 

-

700

-

                     Pre-tax total special expense items 

19,347

14,694

16,625

     Tax effect of special items 

(2,981)

(4,231)

(5,371)

 GAAP net income excluding special expense items 

$        119,486

$ 129,477

$        139,142

 GAAP net income per share excluding special expense items: 

    Basic 

$          0.42

$   0.45

$          0.48

    Diluted 

$          0.41

$   0.44

$          0.47

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

    Basic

284,654

290,146

292,213

    Diluted 

290,260

296,756

298,782

(1) Includes severance charges associated with the reorganization of various business units and manufacturing operations.

(2) Other operating expenses (income), net are primarily for  certain payroll taxes, contingent consideration adjustments related to certain acquisitions, loss (gain) relating to sale of land and buildings, acquisition related expenses and  loss on lease abandonment.

(3) Includes impairment of investment in a privately held company.