GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Fourth Quarter of

Year of

2023

2022

2023

2022

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$   932.4

$   856.5

$ 3,798.7

$ 3,676.3

GROSS MARGIN:

GAAP gross margin:

$   577.3

61.9 %

$   503.1

58.7 %

$ 2,332.8

61.4 %

$ 2,105.6

57.3 %

Amortization of purchased intangible assets

(A)

27.8

21.6

108.7

85.0

Acquisition / divestiture items

(B)

0.1

0.2

0.5

0.2

Stock-based compensation / deferred compensation

(C)

3.6

3.4

15.0

12.1

Restructuring and other costs

(D)

0.5

0.7

(0.1)

1.7

Non-GAAP gross margin:

$   609.3

65.3 %

$   529.0

61.8 %

$ 2,456.9

64.7 %

$ 2,204.6

60.0 %

OPERATING EXPENSES:

GAAP operating expenses:

$   480.4

51.5 %

$   406.4

47.4 %

$ 1,884.0

49.6 %

$ 1,594.7

43.4 %

Amortization of purchased intangible assets

(A)

(28.8)

(12.1)

(103.6)

(46.6)

Acquisition / divestiture items

(B)

(16.8)

(12.3)

(71.9)

(32.6)

Stock-based compensation / deferred compensation

(C)

(32.1)

(25.7)

(136.1)

(99.9)

Restructuring and other costs

(D)

(20.0)

(15.1)

(50.2)

(52.5)

Non-GAAP operating expenses:

$   382.7

41.0 %

$   341.2

39.8 %

$ 1,522.2

40.1 %

$ 1,363.1

37.1 %

OPERATING INCOME:

GAAP operating income:

$     96.9

10.4 %

$     96.7

11.3 %

$   448.8

11.8 %

$   510.9

13.9 %

Amortization of purchased intangible assets

(A)

56.6

33.7

212.3

131.6

Acquisition / divestiture items

(B)

16.9

12.5

72.4

32.8

Stock-based compensation / deferred compensation

(C)

35.7

29.1

151.1

112.0

Restructuring and other costs

(D)

20.5

15.8

50.1

54.2

Non-GAAP operating income:

$   226.6

24.3 %

$   187.8

21.9 %

$   934.7

24.6 %

$   841.5

22.9 %

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$   (37.4)

$     (5.6)

$   (91.8)

$     58.2

Acquisition / divestiture items

(B)

1.1

(4.5)

(36.5)

(107.5)

Deferred compensation

(C)

(2.9)

(2.0)

(5.8)

8.5

Restructuring and other costs

(D)

(0.1)

5.9

1.3

6.0

Non-GAAP non-operating expense, net:

$   (39.3)

$     (6.2)

$  (132.8)

$   (34.8)

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

(G)

(G)

(G)

(G)

INCOME TAX PROVISION:

GAAP income tax (benefit) provision:

$     (3.5)

(5.9) %

$       5.5

6.0 %

$     45.7

12.8 %

$   119.4

21.0 %

Non-GAAP items tax effected

(E)

8.3

15.2

56.9

49.9

Difference in GAAP and Non-GAAP tax rate

(F)

25.9

11.0

35.6

(22.9)

Non-GAAP income tax provision:

$     30.7

16.4 %

$     31.7

17.5 %

$   138.2

17.2 %

$   146.4

18.2 %

NET INCOME:

GAAP net income:

$     63.0

$     85.6

$   311.3

$   449.7

Amortization of purchased intangible assets

(A)

56.6

33.7

212.3

131.6

Acquisition / divestiture items

(B)

18.0

8.0

35.9

(74.7)

Stock-based compensation / deferred compensation

(C)

32.8

27.1

145.3

120.5

Restructuring and other costs

(D)

20.4

21.7

51.4

60.2

Non-GAAP tax adjustments

(E) - (F)

(34.2)

(26.2)

(92.5)

(27.0)

Non-GAAP net income:

$   156.6

$   149.9

$   663.7

$   660.3

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share:

$     0.25

$     0.34

$     1.25

$     1.80

Amortization of purchased intangible assets

(A)

0.23

0.14

0.85

0.53

Acquisition / divestiture items

(B)

0.07

0.03

0.14

(0.30)

Stock-based compensation / deferred compensation

(C)

0.13

0.11

0.58

0.48

Restructuring and other costs

(D)

0.08

0.09

0.21

0.24

Non-GAAP tax adjustments

(E) - (F)

(0.13)

(0.11)

(0.37)

(0.11)

Non-GAAP diluted net income per share:

$     0.63

$     0.60

$     2.66

$     2.64

ADJUSTED EBITDA:

GAAP operating income:

$     96.9

10.4 %

$     96.7

11.3 %

$   448.8

11.8 %

$   510.9

13.9 %

Amortization of purchased intangible assets

(A)

56.6

33.7

212.3

131.6

Acquisition / divestiture items

(B)

16.9

12.5

72.4

32.8

Stock-based compensation / deferred compensation

(C)

35.7

29.1

151.1

112.0

Restructuring and other costs

(D)

20.5

15.8

50.1

54.2

Non-GAAP operating income:

226.6

24.3 %

187.8

21.9 %

934.7

24.6 %

841.5

22.9 %

Depreciation expense and cloud computing amortization

11.1

11.8

46.9

44.7

Income from equity method investments, net

3.5

8.8

28.1

31.1

Adjusted EBITDA:

$   241.2

25.9 %

$   208.4

24.3 %

$ 1,009.7

26.6 %

$   917.3

25.0 %