NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
|
September 29,
2019 |
June 30,
2019 |
September 30,
2018 | |||||||||
| Revenue | $ | 2,265 | $ | 2,217 | $ | 2,445 | |||||
| GAAP Gross Profit | $ | 1,186 | $ | 1,151 | $ | 1,256 | |||||
| PPA Effects | (19 | ) | (20 | ) | (20 | ) | |||||
| Restructuring | 1 | — | — | ||||||||
| Stock Based Compensation | (11 | ) | (10 | ) | (11 | ) | |||||
| Merger-related costs | (1 | ) | — | (8 | ) | ||||||
| Non-GAAP Gross Profit | $ | 1,216 | $ | 1,181 | $ | 1,295 | |||||
| GAAP Gross margin | 52.4 | % | 51.9 | % | 51.4 | % | |||||
| Non-GAAP Gross margin | 53.7 | % | 53.3 | % | 53.0 | % | |||||
| GAAP Research and development | $ | (396 | ) | $ | (408 | ) | $ | (433 | ) | ||
| Restructuring | — | (5 | ) | — | |||||||
| Stock based compensation | (34 | ) | (34 | ) | (34 | ) | |||||
| Merger-related costs | (1 | ) | (2 | ) | (18 | ) | |||||
| Non-GAAP Research and development | $ | (361 | ) | $ | (367 | ) | $ | (381 | ) | ||
| GAAP Selling, general and administrative | $ | (221 | ) | $ | (230 | ) | $ | (252 | ) | ||
| PPA effects | (5 | ) | (2 | ) | (2 | ) | |||||
| Restructuring | — | — | (5 | ) | |||||||
| Stock based compensation | (39 | ) | (43 | ) | (38 | ) | |||||
| Merger-related costs | (4 | ) | (8 | ) | (21 | ) | |||||
| Other incidentals | (3 | ) | (3 | ) | (4 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (170 | ) | $ | (174 | ) | $ | (182 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (358 | ) | $ | (355 | ) | $ | (362 | ) | ||
| PPA effects | (358 | ) | (355 | ) | (362 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | 22 | $ | (1 | ) | $ | 2,002 | ||||
| Merger-related costs | — | — | 1,961 | ||||||||
| Other incidentals | 20 | (1 | ) | 40 | |||||||
| Non-GAAP Other income (expense) | $ | 2 | $ | — | $ | 1 | |||||
| GAAP Operating income (loss) | $ | 233 | $ | 157 | $ | 2,211 | |||||
| PPA effects | (382 | ) | (377 | ) | (384 | ) | |||||
| Restructuring | 1 | (5 | ) | (5 | ) | ||||||
| Stock based compensation | (84 | ) | (87 | ) | (83 | ) | |||||
| Merger-related costs | (6 | ) | (10 | ) | 1,914 | ||||||
| Other incidentals | 17 | (4 | ) | 36 | |||||||
| Non-GAAP Operating income (loss) | $ | 687 | $ | 640 | $ | 733 | |||||
| GAAP Operating margin | 10.3 | % | 7.1 | % | 90.4 | % | |||||
| Non-GAAP Operating margin | 30.3 | % | 28.9 | % | 30.0 | % | |||||
| GAAP Financial Income (expense) | $ | (85 | ) | $ | (89 | ) | $ | (119 | ) | ||
| Non-cash interest expense on convertible notes | (12 | ) | (11 | ) | (11 | ) | |||||
| Foreign exchange gain (loss) | (2 | ) | (4 | ) | (3 | ) | |||||
| Gain (loss) on extinguishment of long-term debt | (1 | ) | (10 | ) | — | ||||||
| Other financial expense | (4 | ) | (3 | ) | (71 | ) | |||||
| Non-GAAP Financial income (expense) | $ | (66 | ) | $ | (61 | ) | $ | (34 | ) | ||
