APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
| Three Months Ended | |||||||
| (In millions, except percentages) | January 29,
2023 | January 30,
2022 | |||||
| Non-GAAP Adjusted Gross Profit | |||||||
| Reported gross profit - GAAP basis | $ | 3,145 | $ | 2,959 | |||
| Certain items associated with acquisitions1 | 7 | 6 | |||||
| Non-GAAP adjusted gross profit | $ | 3,152 | $ | 2,965 | |||
| Non-GAAP adjusted gross margin | 46.8 | % | 47.3 | % | |||
| Non-GAAP Adjusted Operating Income | |||||||
| Reported operating income - GAAP basis | $ | 1,970 | $ | 1,976 | |||
| Certain items associated with acquisitions1 | 11 | 9 | |||||
| Acquisition integration and deal costs | 6 | 4 | |||||
| Severance and related charges2 | — | (4 | ) | ||||
| Non-GAAP adjusted operating income | $ | 1,987 | $ | 1,985 | |||
| Non-GAAP adjusted operating margin | 29.5 | % | 31.7 | % | |||
| Non-GAAP Adjusted Net Income | |||||||
| Reported net income - GAAP basis | $ | 1,717 | $ | 1,792 | |||
| Certain items associated with acquisitions 1 | 11 | 9 | |||||
| Acquisition integration and deal costs | 6 | 4 | |||||
| Severance and related charges 2 | — | (4 | ) | ||||
| Realized loss (gain) on strategic investments, net | (4 | ) | 2 | ||||
| Unrealized loss (gain) on strategic investments, net | (4 | ) | (5 | ) | |||
| Income tax effect of share-based compensation 3 | (14 | ) | (58 | ) | |||
| Income tax effects related to intra-entity intangible asset transfers | 17 | 18 | |||||
| Resolution of prior years’ income tax filings and other tax items | (5 | ) | (62 | ) | |||
| Non-GAAP adjusted net income | $ | 1,724 | $ | 1,696 | |||
