CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

Third Quarter of

First Three Quarters of

2023

2022

2023

2022

Revenue:

Product

$          444.0

$          472.5

$       1,368.9

$       1,570.3

Subscription and services

513.3

412.4

1,497.4

1,249.5

Total revenue

957.3

884.9

2,866.3

2,819.8

Cost of sales:

Product

215.6

239.8

665.7

815.5

Subscription and services

123.8

109.8

364.2

338.4

Amortization of purchased intangible assets

27.7

19.9

80.9

63.4

Total cost of sales

367.1

369.5

1,110.8

1,217.3

Gross margin

590.2

515.4

1,755.5

1,602.5

Gross margin (%)

61.7 %

58.2 %

61.2 %

56.8 %

Operating expense:

Research and development

162.5

127.0

496.6

407.4

Sales and marketing

146.2

137.1

436.9

407.9

General and administrative

117.2

109.6

369.2

318.0

Restructuring charges

11.8

8.2

26.1

20.5

Amortization of purchased intangible assets

31.2

11.1

74.8

34.5

Total operating expense

468.9

393.0

1,403.6

1,188.3

Operating income

121.3

122.4

351.9

414.2

Non-operating income (expense), net:

Divestitures gain, net

5.5

6.0

10.6

103.1

Interest expense, net

(46.8)

(15.6)

(113.2)

(46.9)

Income from equity method investments, net

5.2

6.8

24.6

22.3

Other income (expense), net

(5.8)

(1.7)

23.6

(14.7)

Total non-operating income (expense), net

(41.9)

(4.5)

(54.4)

63.8

Income before taxes

79.4

117.9

297.5

478.0

Income tax provision

4.5

32.1

49.2

113.9

Net income

$            74.9

$            85.8

248.3

364.1

Earnings per share:

Basic

$            0.30

$            0.35

$            1.00

$            1.46

Diluted

$            0.30

$            0.34

$            1.00

$            1.45

Shares used in calculating earnings per share:

Basic

248.6

247.5

248.0

249.1

Diluted

249.7

248.9

249.1

250.8