Three Months Ended

December 28,

September 28,

December 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

$       328,672

$        347,196

$       363,375

GAAP gross profit %

53.0%

59.3%

60.0%

Special items:

      Intangible asset amortization 

19,098

8,092

8,986

      Acquisition-related inventory write-up

13,066

-

-

 Total special items 

32,164

8,092

8,986

 GAAP gross profit excluding special items 

$       360,836

$        355,288

$       372,361

 GAAP gross profit % excluding special items 

58.2%

60.7%

61.5%

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

GAAP operating expenses

$       252,277

$        218,587

$       245,827

Special items:

   Intangible asset amortization 

4,968

3,436

3,903

   Impairment of long-lived assets (1) 

5,197

-

22,222

   Severance and restructuring (2) 

10,227

5,547

2,236

     Acquisition-related costs

4,137

2,934

-

   Other operating expenses (income), net (3) 

1,306

(662)

1,666

 Total special items 

25,835

11,255

30,027

 GAAP operating expenses excluding special items 

$       226,442

$        207,332

$       215,800

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

GAAP net income

$         49,322

$        103,120

$         76,622

Special items:

      Intangible asset amortization

24,066

11,528

12,889

      Acquisition-related inventory write-up

13,066

-

-

      Impairment of long-lived assets (1)

5,197

-

22,222

     Severance and restructuring (2) 

10,227

5,547

2,236

     Acquisition-related costs

4,137

2,934

-

     Other operating expenses (income) , net (3) 

1,306

(662)

1,666

                     Pre-tax total special items 

57,999

19,347

39,013

     Tax effect of special items 

(4,862)

(2,981)

(9,555)

     International restructuring implementation  

-

-

18,726

 GAAP net income excluding special items 

$       102,459

$        119,486

$       124,806

 GAAP net income per share excluding special items: 

    Basic 

$         0.36

$          0.42

$         0.43

    Diluted 

$         0.36

$          0.41

$         0.42

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

    Basic

282,664

284,654

292,075

    Diluted 

288,565

290,260

298,759

(1) Includes impairment charges relating to fab tools, land and buildings held-for-sale, and end of line manufacturing equipment.

(2) Includes severance & retention charges and lease abandonment charges related to the Volterra acquisition, and severance charges related to the reorganization of various business units and manufacturing operations.

(3) Other operating expenses (income), net are primarily for contingent consideration adjustments related to certain acquisitions and certain payroll taxes.