Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| April 3, 2022 |
December 31,
2021 | April 4, 2021 | |||||||||
| Revenue | $ | 3,136 | $ | 3,039 | $ | 2,567 | |||||
| GAAP Gross Profit | $ | 1,777 | $ | 1,707 | $ | 1,355 | |||||
| PPA Effects | (14 | ) | (18 | ) | (18 | ) | |||||
| Stock Based Compensation | (11 | ) | (11 | ) | (12 | ) | |||||
| Other incidentals | (5 | ) | (4 | ) | (7 | ) | |||||
| Non-GAAP Gross Profit | $ | 1,807 | $ | 1,740 | $ | 1,392 | |||||
| GAAP Gross margin | 56.7 | % | 56.2 | % | 52.8 | % | |||||
| Non-GAAP Gross margin | 57.6 | % | 57.3 | % | 54.2 | % | |||||
| GAAP Research and development | $ | (518 | ) | $ | (507 | ) | $ | (461 | ) | ||
| Restructuring | 1 | — | — | ||||||||
| Stock based compensation | (44 | ) | (44 | ) | (40 | ) | |||||
| Other incidentals | (1 | ) | — | (1 | ) | ||||||
| Non-GAAP Research and development | $ | (474 | ) | $ | (463 | ) | $ | (420 | ) | ||
| GAAP Selling, general and administrative | $ | (251 | ) | $ | (257 | ) | $ | (222 | ) | ||
| PPA effects | (1 | ) | (1 | ) | — | ||||||
| Stock based compensation | (34 | ) | (33 | ) | (39 | ) | |||||
| Other incidentals | (2 | ) | (5 | ) | (3 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (214 | ) | $ | (218 | ) | $ | (180 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (135 | ) | $ | (136 | ) | $ | (180 | ) | ||
| PPA effects | (135 | ) | (136 | ) | (180 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | — | $ | — | $ | — | |||||
| Other incidentals | — | (1 | ) | — | |||||||
| Non-GAAP Other income (expense) | $ | — | $ | 1 | $ | — | |||||
| GAAP Operating income (loss) | $ | 873 | $ | 807 | $ | 492 | |||||
| PPA effects | (150 | ) | (155 | ) | (198 | ) | |||||
| Restructuring | 1 | — | — | ||||||||
| Stock based compensation | (89 | ) | (88 | ) | (91 | ) | |||||
| Other incidentals | (8 | ) | (10 | ) | (11 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,119 | $ | 1,060 | $ | 792 | |||||
| GAAP Operating margin | 27.8 | % | 26.6 | % | 19.2 | % | |||||
| Non-GAAP Operating margin | 35.7 | % | 34.9 | % | 30.9 | % | |||||
| GAAP Financial income (expense) | $ | (105 | ) | $ | (123 | ) | $ | (87 | ) | ||
| Foreign exchange gain (loss) | (1 | ) | (1 | ) | — | ||||||
| Gain (loss) on extinguishment of long-term debt | — | (22 | ) | — | |||||||
| Other financial income (expense) | (1 | ) | (7 | ) | — | ||||||
| Non-GAAP Financial income (expense) | $ | (103 | ) | $ | (93 | ) | $ | (87 | ) | ||
