GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Third Quarter of

First Three Quarters of

2024

2023

2024

2023

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$   875.8

$   957.3

$ 2,699.9

$ 2,866.3

GROSS MARGIN:

GAAP gross margin:

$   575.6

65.7 %

$   590.2

61.7 %

$ 1,715.1

63.5 %

$ 1,755.5

61.2 %

Amortization of purchased intangible assets

(A)

18.9

27.7

74.7

80.9

Acquisition / divestiture items

(B)

—

—

—

0.4

Stock-based compensation / deferred compensation

(C)

4.2

3.8

12.7

11.4

Restructuring and other costs

(D)

0.9

0.1

2.9

(0.6)

Non-GAAP gross margin:

$   599.6

68.5 %

$   621.8

65.0 %

$ 1,805.4

66.9 %

$ 1,847.6

64.5 %

OPERATING EXPENSES:

GAAP operating expenses:

$   459.2

52.4 %

$   468.9

49.0 %

$ 1,427.9

52.9 %

$ 1,403.6

49.0 %

Amortization of purchased intangible assets

(A)

(26.5)

(31.2)

(79.7)

(74.8)

Acquisition / divestiture items

(B)

(17.4)

(22.0)

(75.2)

(55.1)

Stock-based compensation / deferred compensation

(C)

(33.9)

(34.1)

(102.3)

(104.0)

Restructuring and other costs

(D)

(6.6)

(10.8)

(18.9)

(30.2)

Non-GAAP operating expenses:

$   374.8

42.8 %

$   370.8

38.7 %

$ 1,151.8

42.7 %

$ 1,139.5

39.8 %

OPERATING INCOME:

GAAP operating income:

$   116.4

13.3 %

$   121.3

12.7 %

$   287.2

10.6 %

$   351.9

12.3 %

Amortization of purchased intangible assets

(A)

45.4

58.9

154.4

155.7

Acquisition / divestiture items

(B)

17.4

22.0

75.2

55.5

Stock-based compensation / deferred compensation

(C)

38.1

37.9

115.0

115.4

Restructuring and other costs

(D)

7.5

10.9

21.8

29.6

Non-GAAP operating income:

$   224.8

25.7 %

$   251.0

26.2 %

$   653.6

24.2 %

$   708.1

24.7 %

NON-OPERATING (EXPENSE) INCOME, NET:

GAAP non-operating (expense) income, net:

$   (43.3)

$   (41.9)

$ 1,620.9

$   (54.4)

Acquisition / divestiture items

(B)

26.8

(5.1)

(1,692.7)

(37.6)

Deferred compensation

(C)

(1.6)

0.8

(4.7)

(2.9)

Restructuring and other costs

(D)

1.4

0.1

6.8

1.4

Non-GAAP non-operating expense, net:

$   (16.7)

$   (46.1)

$   (69.7)

$   (93.5)

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 provision:

$     32.5

44.5 %

$       4.5

5.7 %

$   493.9

25.9 %

$     49.2

16.5 %

Non-GAAP items tax effected

(E)

60.1

7.2

(313.5)

48.6

Difference in GAAP and Non-GAAP tax rate

(F)

(56.4)

23.0

(79.4)

9.7

Non-GAAP income tax provision:

$     36.2

17.4 %

$     34.7

16.9 %

$   101.0

17.3 %

$   107.5

17.5 %

NET INCOME:

GAAP net income:

$     40.6

$     74.9

$ 1,414.2

$   248.3

Amortization of purchased intangible assets

(A)

45.4

58.9

154.4

155.7

Acquisition / divestiture items

(B)

44.2

16.9

(1,617.5)

17.9

Stock-based compensation / deferred compensation

(C)

36.5

38.7

110.3

112.5

Restructuring and other costs

(D)

8.9

11.0

28.6

31.0

Non-GAAP tax adjustments

(E) - (F)

(3.7)

(30.2)

392.9

(58.3)

Non-GAAP net income:

$   171.9

$   170.2

$   482.9

$   507.1

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share:

$     0.16

$     0.30

$     5.73

$     1.00

Amortization of purchased intangible assets

(A)

0.18

0.24

0.63

0.63

Acquisition / divestiture items

(B)

0.18

0.07

(6.56)

0.07

Stock-based compensation / deferred compensation

(C)

0.15

0.15

0.45

0.45

Restructuring and other costs

(D)

0.04

0.04

0.12

0.12

Non-GAAP tax adjustments

(E) - (F)

(0.01)

(0.12)

1.59

(0.23)

Non-GAAP diluted net income per share:

$     0.70

$     0.68

$     1.96

$     2.04

ADJUSTED EBITDA:

GAAP operating income:

$   116.4

13.3 %

$   121.3

12.7 %

$   287.2

10.6 %

$   351.9

12.3 %

Amortization of purchased intangible assets

(A)

45.4

58.9

154.4

155.7

Acquisition / divestiture items

(B)

17.4

22.0

75.2

55.5

Stock-based compensation / deferred compensation

(C)

38.1

37.9

115.0

115.4

Restructuring and other costs

(D)

7.5

10.9

21.8

29.6

Non-GAAP operating income:

224.8

25.7 %

251.0

26.2 %

653.6

24.2 %

708.1

24.7 %

Depreciation expense and cloud computing amortization

11.8

12.0

34.8

35.8

Income from equity method investments, net

0.8

5.2

13.9

24.6

Adjusted EBITDA:

$   237.4

27.1 %

$   268.2

28.0 %

$   702.3

26.0 %

$   768.5

26.8 %

Fourth Quarter of 2024

Year 2024

Low End

High End

Low End

High End

FORECASTED DILUTED NET INCOME PER SHARE:

Forecasted GAAP diluted net income per share:

$     0.52

$  0.61

$     6.25

$  6.32

Amortization of purchased intangible assets

(A)

0.18

0.18

0.81

0.81

Acquisition / divestiture items

(B)

0.02

0.02

(6.52)

(6.52)

Stock-based compensation / deferred compensation

(C)

0.18

0.18

0.63

0.63

Restructuring and other costs

(D)

0.02

0.02

0.13

0.13

Non-GAAP tax adjustments

(E) - (F)

(0.09)

(0.10)

1.49

1.50

Forecasted non-GAAP diluted net income per share:

$     0.83

$  0.91

$     2.79

$  2.87