| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
| 2 | The severance and related charges primarily related to a one-time voluntary retirement program offered to certain eligible employees. |
| 3 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. |
| 4 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
| Three Months Ended | Nine Months Ended | ||||||||||||
| (In millions, except per share amounts) | July 30,
2023 | July 31,
2022 | July 30,
2023 | July 31,
2022 | |||||||||
| Non-GAAP Adjusted Earnings Per Diluted Share | |||||||||||||
| Reported earnings per diluted share - GAAP basis | $ | 1.85 | $ | 1.85 | $ | 5.73 | $ | 5.59 | |||||
| Certain items associated with acquisitions | 0.01 | 0.01 | 0.04 | 0.03 | |||||||||
| Acquisition integration and deal costs | 0.01 | 0.01 | 0.02 | 0.03 | |||||||||
| Realized loss (gain), dividends and impairments on strategic investments, net | — | — | 0.13 | — | |||||||||
| Unrealized loss (gain) on strategic investments, net | — | 0.02 | 0.01 | (0.02 | ) | ||||||||
| Income tax effect of share-based compensation | 0.01 | 0.03 | (0.01 | ) | (0.03 | ) | |||||||
| Income tax effects related to intra-entity intangible asset transfers | 0.01 | 0.02 | 0.03 | 0.14 | |||||||||
| Resolution of prior years’ income tax filings and other tax items | 0.01 | — | (0.02 | ) | (0.06 | ) | |||||||
| Non-GAAP adjusted earnings per diluted share | $ | 1.90 | $ | 1.94 | $ | 5.93 | $ | 5.68 | |||||
| Weighted average number of diluted shares | 843 | 869 | 846 | 883 | |||||||||
