Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | |||||||||||||
| June 28, 2020 | March 29, 2020 | June 30, 2019 | ||||||||||||
| Revenue | $ | 1,817 | $ | 2,021 | $ | 2,217 | ||||||||
| GAAP Gross Profit | $ | 860 | $ | 997 | $ | 1,151 | ||||||||
| PPA Effects | (20 | ) | (36 | ) | (20 | ) | ||||||||
| Restructuring | — | (3 | ) | — | ||||||||||
| Stock Based Compensation | (11 | ) | (11 | ) | (10 | ) | ||||||||
| Merger-related costs | (1 | ) | — | — | ||||||||||
| Non-GAAP Gross Profit | $ | 892 | $ | 1,047 | $ | 1,181 | ||||||||
| GAAP Gross margin | 47.3 | % | 49.3 | % | 51.9 | % | ||||||||
| Non-GAAP Gross margin | 49.1 | % | 51.8 | % | 53.3 | % | ||||||||
| GAAP Research and development | $ | (402 | ) | $ | (425 | ) | $ | (408 | ) | |||||
| Restructuring | (6 | ) | (4 | ) | (5 | ) | ||||||||
| Stock based compensation | (39 | ) | (40 | ) | (34 | ) | ||||||||
| Merger-related costs | — | (1 | ) | (2 | ) | |||||||||
| Non-GAAP Research and development | $ | (357 | ) | $ | (380 | ) | $ | (367 | ) | |||||
| GAAP Selling, general and administrative | $ | (222 | ) | $ | (233 | ) | $ | (230 | ) | |||||
| PPA effects | (2 | ) | (2 | ) | (2 | ) | ||||||||
| Restructuring | (2 | ) | (4 | ) | — | |||||||||
| Stock based compensation | (55 | ) | (56 | ) | (43 | ) | ||||||||
| Merger-related costs | (2 | ) | (3 | ) | (8 | ) | ||||||||
| Other incidentals | (2 | ) | (3 | ) | (3 | ) | ||||||||
| Non-GAAP Selling, general and administrative | $ | (159 | ) | $ | (165 | ) | $ | (174 | ) | |||||
| GAAP amortization of acquisition-related intangible assets | $ | (380 | ) | $ | (381 | ) | $ | (355 | ) | |||||
| PPA effects | (380 | ) | (381 | ) | (355 | ) | ||||||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | ||||||||
| GAAP Other income (expense) | $ | (1 | ) | $ | 110 | $ | (1 | ) | ||||||
| Other incidentals | (1 | ) | 110 | (1 | ) | |||||||||
| Non-GAAP Other income (expense) | $ | — | $ | — | $ | — | ||||||||
| GAAP Operating income (loss) | $ | (145 | ) | $ | 68 | $ | 157 | |||||||
| PPA effects | (402 | ) | (419 | ) | (377 | ) | ||||||||
| Restructuring | (8 | ) | (11 | ) | (5 | ) | ||||||||
| Stock based compensation | (105 | ) | (107 | ) | (87 | ) | ||||||||
| Merger-related costs | (3 | ) | (4 | ) | (10 | ) | ||||||||
| Other incidentals | (3 | ) | 107 | (4 | ) | |||||||||
| Non-GAAP Operating income (loss) | $ | 376 | $ | 502 | $ | 640 | ||||||||
| GAAP Operating margin | (8.0 | ) | % | 3.4 | % | 7.1 | % | |||||||
| Non-GAAP Operating margin | 20.7 | % | 24.8 | % | 28.9 | % | ||||||||
| GAAP Financial Income (expense) | $ | (96 | ) | $ | (78 | ) | $ | (89 | ) | |||||
| Non-cash interest expense on convertible notes | — | — | (11 | ) | ||||||||||
| Foreign exchange gain (loss) | (2 | ) | (1 | ) | (4 | ) | ||||||||
| Gain (loss) on extinguishment of long-term debt | — | — | (10 | ) | ||||||||||
| Other financial expense | (2 | ) | (2 | ) | (3 | ) | ||||||||
| Non-GAAP Financial income (expense) | $ | (92 | ) | $ | (75 | ) | $ | (61 | ) | |||||
