| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income.
| APPLIED MATERIALS, INC. | |||
| UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE | |||
| Three Months
Ended | |||
| (In millions, except percentages) | July 28, 2024 | ||
| GAAP provision for income taxes (a) | $ | 255 | |
| Income tax effect of share-based compensation | (8 | ) | |
| Income tax effects related to intra-entity intangible asset transfers | (17 | ) | |
| Resolutions of prior years’ income tax filings and other tax items | 11 | ||
| Income tax effect of non-GAAP adjustments | 4 | ||
| Non-GAAP provision for income taxes (b) | $ | 245 | |
| GAAP income before income taxes (c) | $ | 1,960 | |
| Certain items associated with acquisitions | 10 | ||
| Acquisition integration and deal costs | 1 | ||
| Realized loss (gain), dividends and impairments on strategic investments, net | 16 | ||
| Unrealized loss (gain) on strategic investments, net | 25 | ||
| Non-GAAP income before income taxes (d) | $ | 2,012 | |
| GAAP effective income tax rate (a/c) | 13.0 | % | |
| Non-GAAP effective income tax rate (b/d) | 12.2 | % | |
| UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (In millions) | July 28,
2024 | July 30,
2023 | July 28,
2024 | July 30,
2023 | |||||||||||
| Cash provided by operating activities | $ | 2,385 | $ | 2,583 | $ | 6,102 | $ | 7,145 | |||||||
| Capital expenditures | (297 | ) | (255 | ) | (783 | ) | (797 | ) | |||||||
| Non-GAAP free cash flow | $ | 2,088 | $ | 2,328 | $ | 5,319 | $ | 6,348 | |||||||
