NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | Full-year | |||||||||||||||||
|
December 31,
2023 |
October 1,
2023 |
December 31,
2022 | 2023 | 2022 | |||||||||||||||
| Revenue | $ | 3,422 | $ | 3,434 | $ | 3,312 | $ | 13,276 | $ | 13,205 | |||||||||
| GAAP Gross Profit | $ | 1,937 | $ | 1,965 | $ | 1,891 | $ | 7,553 | $ | 7,517 | |||||||||
| PPA Effects | (13 | ) | (13 | ) | (15 | ) | (53 | ) | (58 | ) | |||||||||
| Restructuring | (13 | ) | — | — | (11 | ) | 3 | ||||||||||||
| Share-based compensation | (14 | ) | (14 | ) | (12 | ) | (54 | ) | (47 | ) | |||||||||
| Other incidentals | (33 | ) | (18 | ) | (4 | ) | (91 | ) | (24 | ) | |||||||||
| Non-GAAP Gross Profit | $ | 2,010 | $ | 2,010 | $ | 1,922 | $ | 7,762 | $ | 7,643 | |||||||||
| GAAP Gross margin | 56.6 | % | 57.2 | % | 57.1 | % | 56.9 | % | 56.9 | % | |||||||||
| Non-GAAP Gross margin | 58.7 | % | 58.5 | % | 58.0 | % | 58.5 | % | 57.9 | % | |||||||||
| GAAP Research and development | $ | (651 | ) | $ | (601 | ) | $ | (540 | ) | $ | (2,418 | ) | $ | (2,148 | ) | ||||
| Restructuring | (49 | ) | 4 | — | (59 | ) | 2 | ||||||||||||
| Share-based compensation | (55 | ) | (53 | ) | (49 | ) | (211 | ) | (183 | ) | |||||||||
| Other incidentals | (1 | ) | (2 | ) | (1 | ) | (5 | ) | (6 | ) | |||||||||
| Non-GAAP Research and development | $ | (546 | ) | $ | (550 | ) | $ | (490 | ) | $ | (2,143 | ) | $ | (1,961 | ) | ||||
| GAAP Selling, general and administrative | $ | (311 | ) | $ | (294 | ) | $ | (261 | ) | $ | (1,159 | ) | $ | (1,066 | ) | ||||
| PPA effects | (1 | ) | (1 | ) | (1 | ) | (3 | ) | (5 | ) | |||||||||
| Restructuring | (22 | ) | — | 2 | (28 | ) | 2 | ||||||||||||
| Share-based compensation | (38 | ) | (36 | ) | (36 | ) | (146 | ) | (134 | ) | |||||||||
| Other incidentals | (5 | ) | (4 | ) | (3 | ) | (32 | ) | (35 | ) | |||||||||
| Non-GAAP Selling, general and administrative | $ | (245 | ) | $ | (253 | ) | $ | (223 | ) | $ | (950 | ) | $ | (894 | ) | ||||
| GAAP Operating income (loss) | $ | 907 | $ | 992 | $ | 980 | $ | 3,661 | $ | 3,797 | |||||||||
| PPA effects | (77 | ) | (85 | ) | (125 | ) | (356 | ) | (572 | ) | |||||||||
| Restructuring | (84 | ) | 4 | 2 | (98 | ) | 7 | ||||||||||||
| Share-based compensation | (107 | ) | (103 | ) | (97 | ) | (411 | ) | (364 | ) | |||||||||
| Other incidentals | (44 | ) | (27 | ) | (8 | ) | (136 | ) | (65 | ) | |||||||||
| Non-GAAP Operating income (loss) | $ | 1,219 | $ | 1,203 | $ | 1,208 | $ | 4,662 | $ | 4,791 | |||||||||
| GAAP Operating margin | 26.5 | % | 28.9 | % | 29.6 | % | 27.6 | % | 28.8 | % | |||||||||
| Non-GAAP Operating margin | 35.6 | % | 35.0 | % | 36.5 | % | 35.1 | % | 36.3 | % | |||||||||
| GAAP Income tax benefit (provision) | $ | (124 | ) | $ | (123 | ) | $ | (523 | ) | ||||||||||
| Income tax effect | 54 | 45 | 170 | ||||||||||||||||
| Non-GAAP Income tax benefit (provision) | $ | (178 | ) | $ | (168 | ) | $ | (693 | ) | ||||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 697 | $ | 787 | $ | 2,797 | |||||||||||||
| PPA Effects | (77 | ) | (85 | ) | (356 | ) | |||||||||||||
| Restructuring | (84 | ) | 4 | (98 | ) | ||||||||||||||
| Share-based compensation | (107 | ) | (103 | ) | (411 | ) | |||||||||||||
| Other incidentals | (44 | ) | (27 | ) | (136 | ) | |||||||||||||
| Other adjustments: | |||||||||||||||||||
| Foreign exchange loss | (6 | ) | (3 | ) | (15 | ) | |||||||||||||
| Other financial expense | (3 | ) | (7 | ) | (11 | ) | |||||||||||||
| Income tax effect | 54 | 45 | 170 | ||||||||||||||||
| Results relating to equity-accounted investees | (2 | ) | (2 | ) | (7 | ) | |||||||||||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 966 | $ | 965 | $ | 3,661 | |||||||||||||
| GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 2.68 | $ | 3.01 | $ | 10.70 | |||||||||||||
| PPA Effects | (0.30 | ) | (0.33 | ) | (1.36 | ) | |||||||||||||
| Restructuring | (0.32 | ) | 0.01 | (0.38 | ) | ||||||||||||||
| Share-based compensation | (0.41 | ) | (0.40 | ) | (1.57 | ) | |||||||||||||
| Other incidentals | (0.17 | ) | (0.10 | ) | (0.52 | ) | |||||||||||||
| Other adjustments: | |||||||||||||||||||
| Foreign exchange loss | (0.02 | ) | (0.01 | ) | (0.06 | ) | |||||||||||||
| Other financial expense | (0.01 | ) | (0.02 | ) | (0.04 | ) | |||||||||||||
| Income tax effect | 0.21 | 0.17 | 0.65 | ||||||||||||||||
| Results relating to equity-accounted investees | (0.01 | ) | (0.01 | ) | (0.03 | ) | |||||||||||||
| Non-GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 3.71 | $ | 3.70 | $ | 14.01 | |||||||||||||
