ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

Year Ended

June 28,

March 29,

June 29,

June 28,

June 29,

2014

2014

2013

2014

2013

(in thousands, except per share data)

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

GAAP gross profit

$           368,960

$              339,937

$           371,399

$    1,384,765

$    1,496,567

GAAP gross profit %

57.4%

56.1%

61.1%

56.4%

61.3%

Special items:

      Intangible asset amortization

18,750

18,542

7,777

64,483

33,994

      Acquisition-related inventory write-up

371

5,518

-

18,955

-

 Total special items 

19,121

24,060

7,777

83,438

33,994

 GAAP gross profit excluding special items 

$           388,081

$              363,997

$           379,176

$    1,468,203

$    1,530,561

 GAAP gross profit % excluding special items 

60.4%

60.1%

62.3%

59.8%

62.7%

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

GAAP operating expenses

$           252,410

$              233,199

$           220,309

$       962,474

$       908,248

Special items:

      Intangible asset amortization 

4,423

4,863

3,670

17,690

15,525

      Impairment of long-lived assets (1)

6,447

-

-

11,644

24,929

     Severance and restructuring 

5,790

3,338

442

24,902

2,829

     Acquisition-related costs 

-

(88)

-

6,983

-

     Other operating expenses (income), net (2) 

8,795

2,913

2,105

18,353

5,864

 Total special items 

25,455

11,026

6,217

79,572

49,147

 GAAP operating expenses excluding special items 

$           226,955

$              222,173

$           214,092

$       859,101

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

GAAP net income

$             84,793

$              122,544

$           119,014

$       354,810

$       454,912

Special items:

      Intangible asset amortization 

23,173

23,405

11,447

82,173

49,519

      Acquisition-related inventory write-up 

371

5,518

-

18,955

-

      Impairment of long-lived assets (1)

6,447

-

-

11,644

24,929

     Severance and restructuring 

5,790

3,338

442

24,902

2,829

     Acquisition-related costs 

-

(88)

-

6,983

-

     Other operating expenses (income), net (2) 

8,795

2,913

2,105

18,353

5,864

      Interest and other expense, net (3) 

2,432

3,723

700

6,155

700

              Pre-tax total special items 

47,008

38,809

14,694

169,165

83,841

     Tax effect of special items 

(6,850)

(3,658)

(4,231)

(19,383)

(22,963)

     Fixed asset tax basis adjustment (4) 

(1,041)

(34,562)

-

(35,603)

-

     International restructuring implementation 

-

-

-

-

18,726

     Fiscal year 2012 research & development tax credits 

-

-

-

-

(3,899)

     Income from discontinued operations, net of tax (5)

-

-

-

-

(2,603)

 GAAP net income excluding special items 

$           123,910

$              123,133

$           129,477

$       468,989

$       528,014

 GAAP net income per share excluding special items: 

    Basic 

$             0.44

$                0.44

$             0.45

$         1.66

$         1.81

    Diluted 

$             0.43

$                0.43

$             0.44

$         1.62

$         1.77

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

    Basic

283,431

282,627

290,146

283,344

291,835

    Diluted 

289,487

288,575

296,756

289,108

298,596