NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions except share data) | Three months ended | ||||||||||
| June 30, 2024 | March 31, 2024 | July 2, 2023 | |||||||||
| GAAP Gross Profit | $ | 1,792 | $ | 1,783 | $ | 1,881 | |||||
| PPA Effects | (12 | ) | (12 | ) | (14 | ) | |||||
| Restructuring | (4 | ) | (3 | ) | — | ||||||
| Share-based compensation | (15 | ) | (15 | ) | (13 | ) | |||||
| Other incidentals | (10 | ) | (5 | ) | (18 | ) | |||||
| Non-GAAP Gross Profit | $ | 1,833 | $ | 1,818 | $ | 1,926 | |||||
| GAAP Gross margin | 57.3 | % | 57.0 | % | 57.0 | % | |||||
| Non-GAAP Gross margin | 58.6 | % | 58.2 | % | 58.4 | % | |||||
| GAAP Research and development | $ | (594 | ) | $ | (564 | ) | $ | (589 | ) | ||
| Restructuring | (4 | ) | (3 | ) | — | ||||||
| Share-based compensation | (58 | ) | (58 | ) | (51 | ) | |||||
| Other incidentals | — | (1 | ) | (1 | ) | ||||||
| Non-GAAP Research and development | $ | (532 | ) | $ | (502 | ) | $ | (537 | ) | ||
| GAAP Selling, general and administrative | $ | (270 | ) | $ | (306 | ) | $ | (274 | ) | ||
| PPA effects | (1 | ) | — | — | |||||||
| Restructuring | 2 | (1 | ) | — | |||||||
| Share-based compensation | (41 | ) | (42 | ) | (38 | ) | |||||
| Other incidentals | (2 | ) | (29 | ) | (2 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (228 | ) | $ | (234 | ) | $ | (234 | ) | ||
| GAAP Operating income (loss) | $ | 896 | $ | 856 | $ | 937 | |||||
| PPA effects | (41 | ) | (63 | ) | (95 | ) | |||||
| Restructuring | (6 | ) | (7 | ) | — | ||||||
| Share-based compensation | (114 | ) | (115 | ) | (102 | ) | |||||
| Other incidentals | (14 | ) | (39 | ) | (21 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,071 | $ | 1,080 | $ | 1,155 | |||||
| GAAP Operating margin | 28.7 | % | 27.4 | % | 28.4 | % | |||||
| Non-GAAP Operating margin | 34.3 | % | 34.5 | % | 35.0 | % | |||||
| GAAP Income tax benefit (provision) | $ | (154 | ) | $ | (141 | ) | $ | (158 | ) | ||
| Income tax effect | 15 | 30 | 22 | ||||||||
| Non-GAAP Income tax benefit (provision) | $ | (169 | ) | $ | (171 | ) | $ | (180 | ) | ||
| GAAP Net income (loss) attributable to stockholders | $ | 658 | $ | 639 | $ | 698 | |||||
| PPA Effects | (41 | ) | (63 | ) | (95 | ) | |||||
| Restructuring | (6 | ) | (7 | ) | — | ||||||
| Share-based compensation | (114 | ) | (115 | ) | (102 | ) | |||||
| Other incidentals | (14 | ) | (39 | ) | (21 | ) | |||||
| Other adjustments: | |||||||||||
| Adjustments to financial income (expense) | (8 | ) | (6 | ) | (1 | ) | |||||
| Income tax effect | 15 | 30 | 22 | ||||||||
| Results relating to equity-accounted investees | (3 | ) | (1 | ) | (1 | ) | |||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 829 | $ | 840 | $ | 896 | |||||
| GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 2.54 | $ | 2.47 | $ | 2.67 | |||||
| PPA Effects | (0.16 | ) | (0.24 | ) | (0.37 | ) | |||||
| Restructuring | (0.02 | ) | (0.03 | ) | — | ||||||
| Share-based compensation | (0.44 | ) | (0.44 | ) | (0.39 | ) | |||||
| Other incidentals | (0.06 | ) | (0.15 | ) | (0.08 | ) | |||||
| Other adjustments: | |||||||||||
| Adjustments to financial income (expense) | (0.03 | ) | (0.02 | ) | — | ||||||
| Income tax effect | 0.06 | 0.11 | 0.08 | ||||||||
| Results relating to equity-accounted investees | (0.01 | ) | — | — | |||||||
| Non-GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 3.20 | $ | 3.24 | $ | 3.43 | |||||
