ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

Year Ended

June 27, 2020

March 28, 2020

June 29, 2019

June 27, 2020

June 29, 2019

(in thousands, except per share data)

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

GAAP gross profit

$                 362,368

$                 366,437

$                 356,391

$             1,432,652

$             1,500,506

GAAP gross profit %

66.4%

65.2%

64.0%

65.4%

64.8%

Special items:

Intangible asset amortization

3,528

3,111

4,038

12,860

22,829

Cost of COVID-19 response programs

1,591

2,025

-

3,616

-

 Total special items 

5,119

5,136

4,038

16,476

22,829

 GAAP gross profit excluding special items 

$                 367,487

$                 371,573

$                 360,429

$             1,449,128

$             1,523,335

 GAAP gross profit % excluding special items 

67.4%

66.1%

64.8%

66.1%

65.8%

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

GAAP operating expenses

$                 184,381

$                 183,090

$                 182,820

$                 746,258

$                 753,408

Special items:

Intangible asset amortization

810

756

756

3,078

3,041

Impairment of long-lived assets

-

-

-

-

753

Severance and restructuring

678

523

1,715

5,363

5,632

Other operating expenses (income), net

(173)

1,077

⁽¹⁾

83

928

143

 Total special items 

1,315

2,356

2,554

9,369

9,569

 GAAP operating expenses excluding special items 

$                 183,066

$                 180,734

$                 180,266

$                 736,889

$                 743,839

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

GAAP net income

$                 207,298

$                 161,190

$                 367,558

$                 654,694

$                 827,486

Special items:

Intangible asset amortization

4,338

3,867

4,794

15,938

25,870

Cost of COVID-19 response programs

1,591

2,025

-

3,616

-

Impairment of long-lived assets

-

-

-

-

753

Severance and restructuring

678

523

1,715

5,363

5,632

Other operating expenses (income), net

(173)

1,077

⁽¹⁾

83

928

143

Interest and other expense (income), net

1,484

(587)

(2,980)

(541)

(4,565)

 Pre-tax total special items 

7,918

6,905

3,612

25,304

27,833

Other income tax effects and adjustments ⁽²⁾

(14,378)

(2,101)

(11,271)

(19,668)

4,747

Impact of U.S. tax legislation ⁽³⁾

6,486

-

47,703

6,486

68,729

Impact of income tax audit settlements ⁽⁴⁾

(51,197)

-

(251,599)

(51,197)

(251,599)

 GAAP net income excluding special items 

$                 156,127

$                 165,994

$                 156,003

$                 615,619

$                 677,196

 GAAP net income per share excluding special items: 

Basic

$                       0.59

$                       0.62

$                       0.57

$                       2.29

$                       2.46

Diluted

$                       0.58

$                       0.61

$                       0.57

$                       2.26

$                       2.43

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

Basic

266,639

269,003

272,382

269,341

274,966

Diluted

268,777

271,579

275,834

272,028

278,777

(1) Includes approximately $0.5 million of acquisition-related costs and $0.5 million of cost related to COVID-19 response programs.

(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) Includes effect of income tax audit settlements.