GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Third Quarter of

First Three Quarters of

2023

2022

2023

2022

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$   957.3

$   884.9

$ 2,866.3

$ 2,819.8

GROSS MARGIN:

GAAP gross margin:

$   590.2

61.7 %

$   515.4

58.2 %

$ 1,755.5

61.2 %

$ 1,602.5

56.8 %

Amortization of purchased intangible assets

(A)

27.7

19.9

80.9

63.4

Acquisition / divestiture items

(B)

—

—

0.4

—

Stock-based compensation / deferred
compensation

(C)

3.8

3.4

11.4

8.7

Restructuring and other costs

(D)

0.1

(0.1)

(0.6)

1.0

Non-GAAP gross margin:

$   621.8

65.0 %

$   538.6

60.9 %

$ 1,847.6

64.5 %

$ 1,675.6

59.4 %

OPERATING EXPENSES:

GAAP operating expenses:

$   468.9

49.0 %

$   393.0

44.4 %

$ 1,403.6

49.0 %

$ 1,188.3

42.1 %

Amortization of purchased intangible assets

(A)

(31.2)

(11.1)

(74.8)

(34.5)

Acquisition / divestiture items

(B)

(22.0)

(9.1)

(55.1)

(20.3)

Stock-based compensation / deferred
compensation

(C)

(34.1)

(28.3)

(104.0)

(74.2)

Restructuring and other costs

(D)

(10.8)

(15.8)

(30.2)

(37.4)

Non-GAAP operating expenses:

$   370.8

38.7 %

$   328.7

37.1 %

$ 1,139.5

39.8 %

$ 1,021.9

36.2 %

OPERATING INCOME:

GAAP operating income:

$   121.3

12.7 %

$   122.4

13.8 %

$   351.9

12.3 %

$   414.2

14.7 %

Amortization of purchased intangible assets

(A)

58.9

31.0

155.7

97.9

Acquisition / divestiture items

(B)

22.0

9.1

55.5

20.3

Stock-based compensation / deferred
compensation

(C)

37.9

31.7

115.4

82.9

Restructuring and other costs

(D)

10.9

15.7

29.6

38.4

Non-GAAP operating income:

$   251.0

26.2 %

$   209.9

23.7 %

$   708.1

24.7 %

$   653.7

23.2 %

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$   (41.9)

$     (4.5)

$   (54.4)

$     63.8

Acquisition / divestiture items

(B)

(5.1)

(5.6)

(37.6)

(103.0)

Deferred compensation

(C)

0.8

0.2

(2.9)

10.5

Restructuring and other costs

(D)

0.1

—

1.4

0.1

Non-GAAP non-operating expense, net:

$   (46.1)

$     (9.9)

$   (93.5)

$   (28.6)

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

(G)

(G)

(G)

(G)

INCOME TAX PROVISION:

GAAP income tax provision:

$       4.5

5.7 %

$     32.1

27.2 %

$     49.2

16.5 %

$   113.9

23.8 %

Non-GAAP items tax effected

(E)

7.2

22.3

48.6

34.7

Difference in GAAP and Non-GAAP tax rate

(F)

23.0

(18.4)

9.7

(33.9)

Non-GAAP income tax provision:

$     34.7

16.9 %

$     36.0

18.0 %

$   107.5

17.5 %

$   114.7

18.3 %

NET INCOME:

GAAP net income:

$     74.9

$     85.8

$   248.3

$   364.1

Amortization of purchased intangible assets

(A)

58.9

31.0

155.7

97.9

Acquisition / divestiture items

(B)

16.9

3.5

17.9

(82.7)

Stock-based compensation / deferred
compensation

(C)

38.7

31.9

112.5

93.4

Restructuring and other costs

(D)

11.0

15.7

31.0

38.5

Non-GAAP tax adjustments

(E) - (F)

(30.2)

(3.9)

(58.3)

(0.8)

Non-GAAP net income:

$   170.2

$   164.0

$   507.1

$   510.4

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share:

$     0.30

$     0.34

$     1.00

$     1.45

Amortization of purchased intangible assets

(A)

0.24

0.13

0.63

0.39

Acquisition / divestiture items

(B)

0.07

0.01

0.07

(0.33)

Stock-based compensation / deferred
compensation

(C)

0.15

0.13

0.45

0.38

Restructuring and other costs

(D)

0.04

0.06

0.12

0.15

Non-GAAP tax adjustments

(E) - (F)

(0.12)

(0.01)

(0.23)

—

Non-GAAP diluted net income per share:

$     0.68

$     0.66

$     2.04

$     2.04

ADJUSTED EBITDA:

GAAP net income:

$     74.9

$     85.8

$   248.3

$   364.1

Non-operating income (expense), net and
income tax provision

46.4

36.6

103.6

50.1

GAAP operating income:

121.3

122.4

351.9

414.2

Amortization of purchased intangible assets

(A)

58.9

31.0

155.7

97.9

Acquisition / divestiture items

(B)

22.0

9.1

55.5

20.3

Stock-based compensation / deferred
compensation

(C)

37.9

31.7

115.4

82.9

Restructuring and other costs

(D)

10.9

15.7

29.6

38.4

Non-GAAP operating income:

251.0

209.9

708.1

653.7

Depreciation expense and cloud computing
amortization

12.0

11.4

35.8

32.9

Income from equity method investments,
net

5.2

6.8

24.6

22.3

Adjusted EBITDA:

$   268.2

28.0 %

$   228.1

25.8 %

$   768.5

26.8 %

$   708.9

25.1 %

Fourth  Quarter of
2023

Year 2023

Low End

High End

Low End

High End

FORECASTED DILUTED NET INCOME PER SHARE:

Forecasted GAAP diluted net income per share:

$     0.14

$  0.23

$     1.15

$  1.23

Amortization of purchased intangible assets

(A)

0.23

0.23

0.86

0.86

Acquisition / divestiture items

(B)

0.04

0.04

0.12

0.12

Stock-based compensation / deferred
compensation

(C)

0.15

0.15

0.60

0.60

Restructuring and other costs

(D)

0.08

0.08

0.20

0.20

Non-GAAP tax adjustments

(E) - (F)

(0.09)

(0.10)

(0.35)

(0.35)

Forecasted non-GAAP diluted net income per share:

$     0.55

$  0.63

$     2.58

$  2.66