Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| October 3, 2021 | July 4, 2021 |
September 27,
2020 | |||||||||
| Revenue | $ | 2,861 | $ | 2,596 | $ | 2,267 | |||||
| GAAP Gross Profit | $ | 1,583 | $ | 1,422 | $ | 1,090 | |||||
| PPA Effects | (20 | ) | (18 | ) | (22 | ) | |||||
| Restructuring | — | — | (12 | ) | |||||||
| Stock Based Compensation | (10 | ) | (12 | ) | (11 | ) | |||||
| Merger-related costs | — | — | — | ||||||||
| Other incidentals | (4 | ) | (4 | ) | — | ||||||
| Non-GAAP Gross Profit | $ | 1,617 | $ | 1,456 | $ | 1,135 | |||||
| GAAP Gross margin | 55.3 | % | 54.8 | % | 48.1 | % | |||||
| Non-GAAP Gross margin | 56.5 | % | 56.1 | % | 50.1 | % | |||||
| GAAP Research and development | $ | (492 | ) | $ | (476 | ) | $ | (438 | ) | ||
| Restructuring | — | (1 | ) | (7 | ) | ||||||
| Stock based compensation | (40 | ) | (41 | ) | (39 | ) | |||||
| Other incidentals | (2 | ) | 1 | (5 | ) | ||||||
| Non-GAAP Research and development | $ | (450 | ) | $ | (435 | ) | $ | (387 | ) | ||
| GAAP Selling, general and administrative | $ | (243 | ) | $ | (234 | ) | $ | (203 | ) | ||
| PPA effects | (2 | ) | (2 | ) | (1 | ) | |||||
| Restructuring | — | — | (2 | ) | |||||||
| Stock based compensation | (31 | ) | (40 | ) | (33 | ) | |||||
| Merger-related costs | — | — | (1 | ) | |||||||
| Other incidentals | (3 | ) | (1 | ) | (3 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (207 | ) | $ | (191 | ) | $ | (163 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (137 | ) | $ | (139 | ) | $ | (418 | ) | ||
| PPA effects | (137 | ) | (139 | ) | (418 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | — | $ | — | $ | 1 | |||||
| Other incidentals | 1 | — | — | ||||||||
| Non-GAAP Other income (expense) | $ | (1 | ) | $ | — | $ | 1 | ||||
| GAAP Operating income (loss) | $ | 711 | $ | 573 | $ | 32 | |||||
| PPA effects | (159 | ) | (159 | ) | (441 | ) | |||||
| Restructuring | — | (1 | ) | (21 | ) | ||||||
| Stock based compensation | (81 | ) | (93 | ) | (83 | ) | |||||
| Merger-related costs | — | — | (1 | ) | |||||||
| Other incidentals | (8 | ) | (4 | ) | (8 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 959 | $ | 830 | $ | 586 | |||||
| GAAP Operating margin | 24.9 | % | 22.1 | % | 1.4 | % | |||||
| Non-GAAP Operating margin | 33.5 | % | 32.0 | % | 25.8 | % | |||||
| GAAP Financial income (expense) | $ | (93 | ) | $ | (100 | ) | $ | (106 | ) | ||
| Foreign exchange gain (loss) | 1 | (1 | ) | (3 | ) | ||||||
| Other financial income (expense) | — | (8 | ) | (3 | ) | ||||||
| Non-GAAP Financial income (expense) | $ | (94 | ) | $ | (91 | ) | $ | (100 | ) | ||
