| APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (In millions, except per share amounts) | October 29,
2017 | October 30,
2016 | October 29,
2017 | October 30,
2016 | |||||||||||
| Non-GAAP Adjusted Earnings Per Diluted Share | |||||||||||||||
| Reported earnings per diluted share - GAAP basis | $ | 0.91 | $ | 0.56 | $ | 3.17 | $ | 1.54 | |||||||
| Certain items associated with acquisitions | 0.04 | 0.04 | 0.16 | 0.16 | |||||||||||
| Resolution of prior years’ income tax filings, reinstatement of federal R&D tax credit and other tax items | (0.01 | ) | 0.05 | (0.07 | ) | 0.04 | |||||||||
| Other gains, losses or charges, net | (0.01 | ) | 0.01 | (0.01 | ) | 0.01 | |||||||||
| Non-GAAP adjusted earnings per diluted share | $ | 0.93 | $ | 0.66 | $ | 3.25 | $ | 1.75 | |||||||
| Weighted average number of diluted shares | 1,076 | 1,093 | 1,084 | 1,116 | |||||||||||
| APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (In millions, except percentages) | October 29,
2017 | October 30,
2016 | October 29,
2017 | October 30,
2016 | |||||||||||
| Semiconductor Systems Non-GAAP Adjusted Operating Income | |||||||||||||||
| Reported operating income - GAAP basis | $ | 801 | $ | 667 | $ | 3,173 | $ | 1,807 | |||||||
| Certain items associated with acquisitions1 | 46 | 46 | 184 | 184 | |||||||||||
| Non-GAAP adjusted operating income | $ | 847 | $ | 713 | $ | 3,357 | $ | 1,991 | |||||||
| Non-GAAP adjusted operating margin | 34.8 | % | 33.5 | % | 35.3 | % | 29.0 | % | |||||||
| AGS Non-GAAP Adjusted Operating Income | |||||||||||||||
| Reported operating income - GAAP basis | $ | 232 | $ | 193 | $ | 817 | $ | 682 | |||||||
| Certain items associated with acquisitions 1 | — | — | 1 | 1 | |||||||||||
| Acquisition integration costs | — | — | 3 | — | |||||||||||
| Non-GAAP adjusted operating income | $ | 232 | $ | 193 | $ | 821 | $ | 683 | |||||||
| Non-GAAP adjusted operating margin | 27.9 | % | 27.8 | % | 27.2 | % | 26.4 | % | |||||||
| Display and Adjacent Markets Non-GAAP Adjusted Operating Income | |||||||||||||||
| Reported operating income - GAAP basis | $ | 212 | $ | 103 | $ | 502 | $ | 245 | |||||||
| Certain items associated with acquisitions 1 | 3 | — | 5 | — | |||||||||||
| Non-GAAP adjusted operating income | $ | 215 | $ | 103 | $ | 507 | $ | 245 | |||||||
| Non-GAAP adjusted operating margin | 31.8 | % | 22.8 | % | 26.7 | % | 20.3 | % | |||||||
| 1 These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | |||||||||||||||
