Applied Materials Announces Third Quarter 2019 Results

APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS

	Three Months Ended						Nine Months Ended

(In millions, except percentages)	July 28, 2019			July 29, 2018			July 28, 2019			July 29, 2018
Non-GAAP Adjusted Gross Profit
Reported gross profit - GAAP basis	$	1,557		$	1,864		$	4,752		$	5,860
Certain items associated with acquisitions¹	9			45			28			134
Non-GAAP adjusted gross profit	$	1,566		$	1,909		$	4,780		$	5,994
Non-GAAP adjusted gross margin	44.0		%	45.9		%	44.0		%	46.3		%
Non-GAAP Adjusted Operating Income
Reported operating income - GAAP basis	$	802		$	1,093		$	2,486		$	3,600
Certain items associated with acquisitions¹	13			49			41			147
Acquisition integration and deal costs	5				—		12			2
Non-GAAP adjusted operating income	$	820		$	1,142		$	2,539		$	3,749
Non-GAAP adjusted operating margin	23.0		%	27.4		%	23.4		%	29.0		%
Non-GAAP Adjusted Net Income
Reported net income - GAAP basis	$	571		$	1,016		$	2,008		$	2,281
Certain items associated with acquisitions ¹	13			49			41			147
Acquisition integration and deal costs	5				—		12			2
Impairment (gain on sale) of strategic investments, net	—			(14		)	—			(10		)
Loss (gain) on strategic investments, net	(8		)	—			(31		)	—
Income tax effect of share-based compensation ²	—			13			(4		)	(13		)
Income tax effect of changes in applicable U.S. tax laws ³	—			12			(24		)	1,089
Income tax effects related to amortization of intra-entity intangible asset transfers	115			—			56			—
Resolution of prior years’ income tax filings and other tax items	(1		)	(29		)	75			(32		)
Income tax effect of non-GAAP adjustments ⁴	(3		)	1			(2		)	(7		)
Non-GAAP adjusted net income	$	692		$	1,048		$	2,131		$	3,457

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 Next Page »