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 | |||||||||||
| Semiconductor Systems Non-GAAP Adjusted Operating Income | |||||||||||||||
| Reported operating income - GAAP basis | $ | 613 | $ | 831 | $ | 1,823 | $ | 2,847 | |||||||
| Certain items associated with acquisitions1 | 11 | 45 | 32 | 137 | |||||||||||
| Non-GAAP adjusted operating income | $ | 624 | $ | 876 | $ | 1,855 | $ | 2,984 | |||||||
| Non-GAAP adjusted operating margin | 27.5 | % | 34.0 | % | 27.6 | % | 35.8 | % | |||||||
| AGS Non-GAAP Adjusted Operating Income | |||||||||||||||
| Reported operating income - GAAP basis | $ | 259 | $ | 280 | $ | 827 | $ | 814 | |||||||
| Acquisition integration costs | — | — | — | 1 | |||||||||||
| Non-GAAP adjusted operating income | $ | 259 | $ | 280 | $ | 827 | $ | 815 | |||||||
| Non-GAAP adjusted operating margin | 27.8 | % | 29.4 | % | 28.7 | % | 29.3 | % | |||||||
| Display and Adjacent Markets Non-GAAP Adjusted Operating Income | |||||||||||||||
| Reported operating income - GAAP basis | $ | 41 | $ | 156 | $ | 198 | $ | 456 | |||||||
| Certain items associated with acquisitions 1 | 2 | 4 | 9 | 10 | |||||||||||
| Acquisition integration costs | 1 | — | 1 | 1 | |||||||||||
| Non-GAAP adjusted operating income | $ | 44 | $ | 160 | $ | 208 | $ | 467 | |||||||
| Non-GAAP adjusted operating margin | 13.0 | % | 26.0 | % | 17.4 | % | 26.3 | % | |||||||
