(2) The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles. The Company also licenses portions of its intellectual property portfolio.
(3) All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments. Also included in this category is stock-based compensation expense.
(4) Reconciliation of GAAP Operating Income to Adjusted EBITDA*
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 29,
2019 | March 30,
2019 | June 30,
2018 | June 29,
2019 | June 30,
2018 | |||||||||||||||
| GAAP operating income | $ | 59 | $ | 38 | $ | 153 | $ | 97 | $ | 273 | |||||||||
| Stock-based compensation | 45 | 41 | 33 | 86 | 65 | ||||||||||||||
| Depreciation and amortization | 52 | 46 | 42 | 98 | 86 | ||||||||||||||
| Loss contingency on legal matter | 7 | 5 | - | 12 | - | ||||||||||||||
| Adjusted EBITDA | $ | 163 | $ | 130 | $ | 228 | $ | 293 | $ | 424 | |||||||||
| (5) | Free Cash Flow Reconciliation** | ||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 29,
2019 | March 30,
2019 | June 30,
2018 | June 29,
2019 | June 30,
2018 | |||||||||||||||
| GAAP net cash provided by (used in) operating activities | $ | 30 | $ | (213 | ) | $ | (56 | ) | $ | (183 | ) | $ | (163 | ) | |||||
| Purchases of property and equipment | (58 | ) | (62 | ) | (43 | ) | (120 | ) | (89 | ) | |||||||||
| Free cash flow | $ | (28 | ) | $ | (275 | ) | $ | (99 | ) | $ | (303 | ) | $ | (252 | ) | ||||
