NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | Full-year | |||||||||||||||||
|
December 31,
2019 |
September 29,
2019 |
December 31,
2018 | 2019 | 2018 | |||||||||||||||
| Revenue | $ | 2,301 | $ | 2,265 | $ | 2,403 | $ | 8,877 | $ | 9,407 | |||||||||
| GAAP Gross Profit | $ | 1,209 | $ | 1,186 | $ | 1,243 | $ | 4,618 | $ | 4,851 | |||||||||
| PPA Effects | (28 | ) | (19 | ) | (19 | ) | (84 | ) | (78 | ) | |||||||||
| Restructuring | — | 1 | — | (3 | ) | — | |||||||||||||
| Stock Based Compensation | (11 | ) | (11 | ) | (12 | ) | (42 | ) | (40 | ) | |||||||||
| Merger-related costs | — | (1 | ) | (1 | ) | (2 | ) | (11 | ) | ||||||||||
| Non-GAAP Gross Profit | $ | 1,248 | $ | 1,216 | $ | 1,275 | $ | 4,749 | $ | 4,980 | |||||||||
| GAAP Gross margin | 52.5 | % | 52.4 | % | 51.7 | % | 52.0 | % | 51.6 | % | |||||||||
| Non-GAAP Gross margin | 54.2 | % | 53.7 | % | 53.1 | % | 53.5 | % | 52.9 | % | |||||||||
| GAAP Research and development | $ | (424 | ) | $ | (396 | ) | $ | (403 | ) | $ | (1,643 | ) | $ | (1,700 | ) | ||||
| Restructuring | — | — | — | (16 | ) | — | |||||||||||||
| Stock based compensation | (38 | ) | (34 | ) | (36 | ) | (141 | ) | (133 | ) | |||||||||
| Merger-related costs | (1 | ) | (1 | ) | (3 | ) | (7 | ) | (24 | ) | |||||||||
| Non-GAAP Research and development | $ | (385 | ) | $ | (361 | ) | $ | (364 | ) | $ | (1,479 | ) | $ | (1,543 | ) | ||||
| GAAP Selling, general and administrative | $ | (225 | ) | $ | (221 | ) | $ | (251 | ) | $ | (924 | ) | $ | (993 | ) | ||||
| PPA effects | (1 | ) | (5 | ) | (2 | ) | (9 | ) | (8 | ) | |||||||||
| Restructuring | 1 | — | (1 | ) | (9 | ) | (7 | ) | |||||||||||
| Stock based compensation | (40 | ) | (39 | ) | (45 | ) | (163 | ) | (141 | ) | |||||||||
| Merger-related costs | (3 | ) | (4 | ) | (11 | ) | (24 | ) | (78 | ) | |||||||||
| Other incidentals | (4 | ) | (3 | ) | (13 | ) | (16 | ) | (21 | ) | |||||||||
| Non-GAAP Selling, general and administrative | $ | (178 | ) | $ | (170 | ) | $ | (179 | ) | $ | (703 | ) | $ | (738 | ) | ||||
| GAAP amortization of acquisition-related intangible assets | $ | (365 | ) | $ | (358 | ) | $ | (364 | ) | $ | (1,435 | ) | $ | (1,449 | ) | ||||
| PPA effects | (365 | ) | (358 | ) | (364 | ) | (1,435 | ) | (1,449 | ) | |||||||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| GAAP Other income (expense) | $ | 2 | $ | 22 | $ | (1 | ) | $ | 25 | $ | 2,001 | ||||||||
| Restructuring | — | — | — | — | 1 | ||||||||||||||
| Merger-related costs | — | — | — | — | 1,961 | ||||||||||||||
| Other incidentals | — | 20 | — | 19 | 39 | ||||||||||||||
| Non-GAAP Other income (expense) | $ | 2 | $ | 2 | $ | (1 | ) | $ | 6 | $ | — | ||||||||
| GAAP Operating income (loss) | $ | 197 | $ | 233 | $ | 224 | $ | 641 | $ | 2,710 | |||||||||
| PPA effects | (394 | ) | (382 | ) | (385 | ) | (1,528 | ) | (1,535 | ) | |||||||||
| Restructuring | 1 | 1 | (1 | ) | (28 | ) | (6 | ) | |||||||||||
| Stock based compensation | (89 | ) | (84 | ) | (93 | ) | (346 | ) | (314 | ) | |||||||||
| Merger-related costs | (4 | ) | (6 | ) | (15 | ) | (33 | ) | 1,848 | ||||||||||
| Other incidentals | (4 | ) | 17 | (13 | ) | 3 | 18 | ||||||||||||
| Non-GAAP Operating income (loss) | $ | 687 | $ | 687 | $ | 731 | $ | 2,573 | $ | 2,699 | |||||||||
| GAAP Operating margin | 8.6 | % | 10.3 | % | 9.3 | % | 7.2 | % | 28.8 | % | |||||||||
| Non-GAAP Operating margin | 29.9 | % | 30.3 | % | 30.4 | % | 29.0 | % | 28.7 | % | |||||||||
| GAAP Financial Income (expense) | $ | (93 | ) | $ | (85 | ) | $ | (77 | ) | $ | (350 | ) | $ | (335 | ) | ||||
| Non-cash interest expense on convertible notes | (8 | ) | (12 | ) | (11 | ) | (42 | ) | (44 | ) | |||||||||
| Foreign exchange gain (loss) | (4 | ) | (2 | ) | (5 | ) | (17 | ) | (11 | ) | |||||||||
| Gain (loss) on extinguishment of long-term debt | — | (1 | ) | — | (11 | ) | (26 | ) | |||||||||||
| Other financial expense | (4 | ) | (4 | ) | (1 | ) | (15 | ) | (78 | ) | |||||||||
| Non-GAAP Financial income (expense) | $ | (77 | ) | $ | (66 | ) | $ | (60 | ) | $ | (265 | ) | $ | (176 | ) | ||||
