NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
|
March 29,
2020 |
December 31,
2019 |
March 31,
2019 | |||||||||
| Revenue | $ | 2,021 | $ | 2,301 | $ | 2,094 | |||||
| GAAP Gross Profit | $ | 997 | $ | 1,209 | $ | 1,072 | |||||
| PPA Effects | (36 | ) | (28 | ) | (17 | ) | |||||
| Restructuring | (3 | ) | — | (4 | ) | ||||||
| Stock Based Compensation | (11 | ) | (11 | ) | (10 | ) | |||||
| Merger-related costs | — | — | (1 | ) | |||||||
| Non-GAAP Gross Profit | $ | 1,047 | $ | 1,248 | $ | 1,104 | |||||
| GAAP Gross margin | 49.3 | % | 52.5 | % | 51.2 | % | |||||
| Non-GAAP Gross margin | 51.8 | % | 54.2 | % | 52.7 | % | |||||
| GAAP Research and development | $ | (425 | ) | $ | (424 | ) | $ | (415 | ) | ||
| Restructuring | (4 | ) | — | (11 | ) | ||||||
| Stock based compensation | (40 | ) | (38 | ) | (35 | ) | |||||
| Merger-related costs | (1 | ) | (1 | ) | (3 | ) | |||||
| Non-GAAP Research and development | $ | (380 | ) | $ | (385 | ) | $ | (366 | ) | ||
| GAAP Selling, general and administrative | $ | (233 | ) | $ | (225 | ) | $ | (248 | ) | ||
| PPA effects | (2 | ) | (1 | ) | (1 | ) | |||||
| Restructuring | (4 | ) | 1 | (10 | ) | ||||||
| Stock based compensation | (56 | ) | (40 | ) | (41 | ) | |||||
| Merger-related costs | (3 | ) | (3 | ) | (9 | ) | |||||
| Other incidentals | (3 | ) | (4 | ) | (6 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (165 | ) | $ | (178 | ) | $ | (181 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (381 | ) | $ | (365 | ) | $ | (357 | ) | ||
| PPA effects | (381 | ) | (365 | ) | (357 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | 110 | $ | 2 | $ | 2 | |||||
| Other incidentals | 110 | — | — | ||||||||
| Non-GAAP Other income (expense) | $ | — | $ | 2 | $ | 2 | |||||
| GAAP Operating income (loss) | $ | 68 | $ | 197 | $ | 54 | |||||
| PPA effects | (419 | ) | (394 | ) | (375 | ) | |||||
| Restructuring | (11 | ) | 1 | (25 | ) | ||||||
| Stock based compensation | (107 | ) | (89 | ) | (86 | ) | |||||
| Merger-related costs | (4 | ) | (4 | ) | (13 | ) | |||||
| Other incidentals | 107 | (4 | ) | (6 | ) | ||||||
| Non-GAAP Operating income (loss) | $ | 502 | $ | 687 | $ | 559 | |||||
| GAAP Operating margin | 3.4 | % | 8.6 | % | 2.6 | % | |||||
| Non-GAAP Operating margin | 24.8 | % | 29.9 | % | 26.7 | % | |||||
| GAAP Financial Income (expense) | $ | (78 | ) | $ | (93 | ) | $ | (83 | ) | ||
| Non-cash interest expense on convertible notes | — | (8 | ) | (11 | ) | ||||||
| Foreign exchange gain (loss) | (1 | ) | (4 | ) | (7 | ) | |||||
| Other financial expense | (2 | ) | (4 | ) | (4 | ) | |||||
| Non-GAAP Financial income (expense) | $ | (75 | ) | $ | (77 | ) | $ | (61 | ) | ||
