Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| October 1, 2023 | July 2, 2023 | October 2, 2022 | |||||||||
| Revenue | $ | 3,434 | $ | 3,299 | $ | 3,445 | |||||
| GAAP Gross Profit | $ | 1,965 | $ | 1,881 | $ | 1,967 | |||||
| PPA Effects | (13 | ) | (14 | ) | (15 | ) | |||||
| Share-based compensation | (14 | ) | (13 | ) | (12 | ) | |||||
| Other incidentals | (18 | ) | (18 | ) | (5 | ) | |||||
| Non-GAAP Gross Profit | $ | 2,010 | $ | 1,926 | $ | 1,999 | |||||
| GAAP Gross margin | 57.2 | % | 57.0 | % | 57.1 | % | |||||
| Non-GAAP Gross margin | 58.5 | % | 58.4 | % | 58.0 | % | |||||
| GAAP Research and development | $ | (601 | ) | $ | (589 | ) | $ | (548 | ) | ||
| Restructuring | 4 | — | — | ||||||||
| Share-based compensation | (53 | ) | (51 | ) | (45 | ) | |||||
| Other incidentals | (2 | ) | (1 | ) | (1 | ) | |||||
| Non-GAAP Research and development | $ | (550 | ) | $ | (537 | ) | $ | (502 | ) | ||
| GAAP Selling, general and administrative | $ | (294 | ) | $ | (274 | ) | $ | (289 | ) | ||
| PPA effects | (1 | ) | — | (2 | ) | ||||||
| Share-based compensation | (36 | ) | (38 | ) | (32 | ) | |||||
| Other incidentals | (4 | ) | (2 | ) | (27 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (253 | ) | $ | (234 | ) | $ | (228 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (71 | ) | $ | (81 | ) | $ | (131 | ) | ||
| PPA effects | (71 | ) | (81 | ) | (131 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | (7 | ) | $ | — | $ | 2 | ||||
| Other incidentals | (3 | ) | — | — | |||||||
| Non-GAAP Other income (expense) | $ | (4 | ) | $ | — | $ | 2 | ||||
| GAAP Operating income (loss) | $ | 992 | $ | 937 | $ | 1,001 | |||||
| PPA effects | (85 | ) | (95 | ) | (148 | ) | |||||
| Restructuring | 4 | — | — | ||||||||
| Share-based compensation | (103 | ) | (102 | ) | (89 | ) | |||||
| Other incidentals | (27 | ) | (21 | ) | (33 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,203 | $ | 1,155 | $ | 1,271 | |||||
| GAAP Operating margin | 28.9 | % | 28.4 | % | 29.1 | % | |||||
| Non-GAAP Operating margin | 35.0 | % | 35.0 | % | 36.9 | % | |||||
| GAAP Financial income (expense) | $ | (75 | ) | $ | (74 | ) | $ | (98 | ) | ||
| Foreign exchange gain (loss) | (3 | ) | (3 | ) | (2 | ) | |||||
| Other financial income (expense) | (7 | ) | 2 | (5 | ) | ||||||
| Non-GAAP Financial income (expense) | $ | (65 | ) | $ | (73 | ) | $ | (91 | ) | ||
| GAAP Income tax benefit (provision) | $ | (123 | ) | $ | (158 | ) | |||||
| Income tax effect | 45 | 22 | |||||||||
| Non-GAAP Income tax benefit (provision) | $ | (168 | ) | $ | (180 | ) | |||||
| GAAP Results relating to equity-accounted investees | $ | (2 | ) | $ | (1 | ) | |||||
| Results relating to equity-accounted investees | (2 | ) | (1 | ) | |||||||
| Non-GAAP Results relating to equity-accounted investees | $ | — | $ | — | |||||||
| GAAP Net income (loss) | $ | 792 | $ | 704 | |||||||
| Less: Net income (loss) attributable to non-controlling interests | 5 | 6 | |||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 787 | $ | 698 | |||||||
| GAAP Net income (loss) attributable to stockholders | $ | 787 | $ | 698 | |||||||
| PPA Effects | (85 | ) | (95 | ) | |||||||
| Restructuring | 4 | — | |||||||||
| Share-based compensation | (103 | ) | (102 | ) | |||||||
| Other incidentals | (27 | ) | (21 | ) | |||||||
| Other adjustments | 33 | 20 | |||||||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 965 | $ | 896 | |||||||
| GAAP Diluted earnings per share | $ | 3.01 | $ | 2.67 | |||||||
| Non-GAAP Diluted earnings per share | $ | 3.70 | $ | 3.43 | |||||||
