NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | Full-year | |||||||||||||||||
|
December 31,
2020 |
September 27,
2020 |
December 31,
2019 | 2020 | 2019 | |||||||||||||||
| Revenue | $ | 2,507 | $ | 2,267 | $ | 2,301 | $ | 8,612 | $ | 8,877 | |||||||||
| GAAP Gross Profit | $ | 1,288 | $ | 1,090 | $ | 1,209 | $ | 4,235 | $ | 4,618 | |||||||||
| PPA Effects | (21 | ) | (22 | ) | (28 | ) | (99 | ) | (84 | ) | |||||||||
| Restructuring | — | (12 | ) | — | (15 | ) | (3 | ) | |||||||||||
| Stock Based Compensation | (12 | ) | (11 | ) | (11 | ) | (45 | ) | (42 | ) | |||||||||
| Merger-related costs | — | — | — | (1 | ) | (2 | ) | ||||||||||||
| Other incidentals | (5 | ) | — | — | (5 | ) | — | ||||||||||||
| Non-GAAP Gross Profit | $ | 1,326 | $ | 1,135 | $ | 1,248 | $ | 4,400 | $ | 4,749 | |||||||||
| GAAP Gross margin | 51.4 | % | 48.1 | % | 52.5 | % | 49.2 | % | 52.0 | % | |||||||||
| Non-GAAP Gross margin | 52.9 | % | 50.1 | % | 54.2 | % | 51.1 | % | 53.5 | % | |||||||||
| GAAP Research and development | $ | (460 | ) | $ | (438 | ) | $ | (424 | ) | $ | (1,725 | ) | $ | (1,643 | ) | ||||
| Restructuring | (22 | ) | (7 | ) | — | (39 | ) | (16 | ) | ||||||||||
| Stock based compensation | (41 | ) | (39 | ) | (38 | ) | (159 | ) | (141 | ) | |||||||||
| Merger-related costs | — | — | (1 | ) | (1 | ) | (7 | ) | |||||||||||
| Other incidentals | (1 | ) | (5 | ) | — | (6 | ) | — | |||||||||||
| Non-GAAP Research and development | $ | (396 | ) | $ | (387 | ) | $ | (385 | ) | $ | (1,520 | ) | $ | (1,479 | ) | ||||
| GAAP Selling, general and administrative | $ | (221 | ) | $ | (203 | ) | $ | (225 | ) | $ | (879 | ) | $ | (924 | ) | ||||
| PPA effects | (2 | ) | (1 | ) | (1 | ) | (7 | ) | (9 | ) | |||||||||
| Restructuring | (16 | ) | (2 | ) | 1 | (24 | ) | (9 | ) | ||||||||||
| Stock based compensation | (36 | ) | (33 | ) | (40 | ) | (180 | ) | (163 | ) | |||||||||
| Merger-related costs | — | (1 | ) | (3 | ) | (6 | ) | (24 | ) | ||||||||||
| Other incidentals | — | (3 | ) | (4 | ) | (8 | ) | (16 | ) | ||||||||||
| Non-GAAP Selling, general and administrative | $ | (167 | ) | $ | (163 | ) | $ | (178 | ) | $ | (654 | ) | $ | (703 | ) | ||||
| GAAP amortization of acquisition-related intangible assets | $ | (148 | ) | $ | (418 | ) | $ | (365 | ) | $ | (1,327 | ) | $ | (1,435 | ) | ||||
| PPA effects | (148 | ) | (418 | ) | (365 | ) | (1,327 | ) | (1,435 | ) | |||||||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| GAAP Other income (expense) | $ | 4 | $ | 1 | $ | 2 | $ | 114 | $ | 25 | |||||||||
| Other incidentals | 3 | — | — | 112 | 19 | ||||||||||||||
| Non-GAAP Other income (expense) | $ | 1 | $ | 1 | $ | 2 | $ | 2 | $ | 6 | |||||||||
| GAAP Operating income (loss) | $ | 463 | $ | 32 | $ | 197 | $ | 418 | $ | 641 | |||||||||
| PPA effects | (171 | ) | (441 | ) | (394 | ) | (1,433 | ) | (1,528 | ) | |||||||||
| Restructuring | (38 | ) | (21 | ) | 1 | (78 | ) | (28 | ) | ||||||||||
| Stock based compensation | (89 | ) | (83 | ) | (89 | ) | (384 | ) | (346 | ) | |||||||||
| Merger-related costs | — | (1 | ) | (4 | ) | (8 | ) | (33 | ) | ||||||||||
| Other incidentals | (3 | ) | (8 | ) | (4 | ) | 93 | 3 | |||||||||||
| Non-GAAP Operating income (loss) | $ | 764 | $ | 586 | $ | 687 | $ | 2,228 | $ | 2,573 | |||||||||
| GAAP Operating margin | 18.5 | % | 1.4 | % | 8.6 | % | 4.9 | % | 7.2 | % | |||||||||
| Non-GAAP Operating margin | 30.5 | % | 25.8 | % | 29.9 | % | 25.9 | % | 29.0 | % | |||||||||
| GAAP Financial income (expense) | $ | (137 | ) | $ | (106 | ) | $ | (93 | ) | $ | (417 | ) | $ | (350 | ) | ||||
| Non-cash interest expense on convertible notes | — | — | (8 | ) | — | (42 | ) | ||||||||||||
| Foreign exchange gain (loss) | (6 | ) | (3 | ) | (4 | ) | (12 | ) | (17 | ) | |||||||||
| Gain (loss) on extinguishment of long-term debt | (60 | ) | — | — | (60 | ) | (11 | ) | |||||||||||
| Other financial income (expense) | 19 | (3 | ) | (4 | ) | 12 | (15 | ) | |||||||||||
| Non-GAAP Financial income (expense) | $ | (90 | ) | $ | (100 | ) | $ | (77 | ) | $ | (357 | ) | $ | (265 | ) | ||||
