NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | Full-year | |||||||||||||||||
| December 31, 2022 | October 2, 2022 | December 31, 2021 | 2022 | 2021 | |||||||||||||||
| Revenue | $ | 3,312 | $ | 3,445 | $ | 3,039 | $ | 13,205 | $ | 11,063 | |||||||||
| GAAP Gross Profit | $ | 1,891 | $ | 1,967 | $ | 1,707 | $ | 7,517 | $ | 6,067 | |||||||||
| PPA Effects | (15 | ) | (15 | ) | (18 | ) | (58 | ) | (74 | ) | |||||||||
| Restructuring | — | — | — | 3 | — | ||||||||||||||
| Stock Based Compensation | (12 | ) | (12 | ) | (11 | ) | (47 | ) | (45 | ) | |||||||||
| Other incidentals | (4 | ) | (5 | ) | (4 | ) | (24 | ) | (19 | ) | |||||||||
| Non-GAAP Gross Profit | $ | 1,922 | $ | 1,999 | $ | 1,740 | $ | 7,643 | $ | 6,205 | |||||||||
| GAAP Gross margin | 57.1 | % | 57.1 | % | 56.2 | % | 56.9 | % | 54.8 | % | |||||||||
| Non-GAAP Gross margin | 58.0 | % | 58.0 | % | 57.3 | % | 57.9 | % | 56.1 | % | |||||||||
| GAAP Research and development | $ | (540 | ) | $ | (548 | ) | $ | (507 | ) | $ | (2,148 | ) | $ | (1,936 | ) | ||||
| Restructuring | — | — | — | 2 | (1 | ) | |||||||||||||
| Stock based compensation | (49 | ) | (45 | ) | (44 | ) | (183 | ) | (165 | ) | |||||||||
| Other incidentals | (1 | ) | (1 | ) | — | (6 | ) | (2 | ) | ||||||||||
| Non-GAAP Research and development | $ | (490 | ) | $ | (502 | ) | $ | (463 | ) | $ | (1,961 | ) | $ | (1,768 | ) | ||||
| GAAP Selling, general and administrative | $ | (261 | ) | $ | (289 | ) | $ | (257 | ) | $ | (1,066 | ) | $ | (956 | ) | ||||
| PPA effects | (1 | ) | (2 | ) | (1 | ) | (5 | ) | (5 | ) | |||||||||
| Restructuring | 2 | — | — | 2 | — | ||||||||||||||
| Stock based compensation | (36 | ) | (32 | ) | (33 | ) | (134 | ) | (143 | ) | |||||||||
| Other incidentals | (3 | ) | (27 | ) | (5 | ) | (35 | ) | (12 | ) | |||||||||
| Non-GAAP Selling, general and administrative | $ | (223 | ) | $ | (228 | ) | $ | (218 | ) | $ | (894 | ) | $ | (796 | ) | ||||
| GAAP amortization of acquisition-related intangible assets | $ | (109 | ) | $ | (131 | ) | $ | (136 | ) | $ | (509 | ) | $ | (592 | ) | ||||
| PPA effects | (109 | ) | (131 | ) | (136 | ) | (509 | ) | (592 | ) | |||||||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| GAAP Other income (expense) | $ | (1 | ) | $ | 2 | $ | — | $ | 3 | $ | — | ||||||||
| Other incidentals | — | — | (1 | ) | — | — | |||||||||||||
| Non-GAAP Other income (expense) | $ | (1 | ) | $ | 2 | $ | 1 | $ | 3 | $ | — | ||||||||
| GAAP Operating income (loss) | $ | 980 | $ | 1,001 | $ | 807 | $ | 3,797 | $ | 2,583 | |||||||||
| PPA effects | (125 | ) | (148 | ) | (155 | ) | (572 | ) | (671 | ) | |||||||||
| Restructuring | 2 | — | — | 7 | (1 | ) | |||||||||||||
| Stock based compensation | (97 | ) | (89 | ) | (88 | ) | (364 | ) | (353 | ) | |||||||||
| Other incidentals | (8 | ) | (33 | ) | (10 | ) | (65 | ) | (33 | ) | |||||||||
| Non-GAAP Operating income (loss) | $ | 1,208 | $ | 1,271 | $ | 1,060 | $ | 4,791 | $ | 3,641 | |||||||||
| GAAP Operating margin | 29.6 | % | 29.1 | % | 26.6 | % | 28.8 | % | 23.3 | % | |||||||||
| Non-GAAP Operating margin | 36.5 | % | 36.9 | % | 34.9 | % | 36.3 | % | 32.9 | % | |||||||||
| GAAP Financial income (expense) | $ | (103 | ) | $ | (98 | ) | $ | (123 | ) | $ | (434 | ) | $ | (403 | ) | ||||
| Foreign exchange gain (loss) | (8 | ) | (2 | ) | (1 | ) | (13 | ) | (1 | ) | |||||||||
| Gain (loss) on extinguishment of long-term debt | — | — | (22 | ) | (18 | ) | (22 | ) | |||||||||||
| Other financial income (expense) | — | (5 | ) | (7 | ) | (17 | ) | (15 | ) | ||||||||||
| Non-GAAP Financial income (expense) | $ | (95 | ) | $ | (91 | ) | $ | (93 | ) | $ | (386 | ) | $ | (365 | ) | ||||
