Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| March 31, 2024 | December 31, 2023 | April 2, 2023 | |||||||||
| GAAP Gross Profit | $ | 1,783 | $ | 1,937 | $ | 1,770 | |||||
| PPA Effects | (12 | ) | (13 | ) | (13 | ) | |||||
| Restructuring | (3 | ) | (13 | ) | 2 | ||||||
| Share-based compensation | (15 | ) | (14 | ) | (13 | ) | |||||
| Other incidentals | (5 | ) | (33 | ) | (22 | ) | |||||
| Non-GAAP Gross Profit | $ | 1,818 | $ | 2,010 | $ | 1,816 | |||||
| GAAP Gross margin | 57.0 | % | 56.6 | % | 56.7 | % | |||||
| Non-GAAP Gross margin | 58.2 | % | 58.7 | % | 58.2 | % | |||||
| GAAP Research and development | $ | (564 | ) | $ | (651 | ) | $ | (577 | ) | ||
| Restructuring | (3 | ) | (49 | ) | (14 | ) | |||||
| Share-based compensation | (58 | ) | (55 | ) | (52 | ) | |||||
| Other incidentals | (1 | ) | (1 | ) | (1 | ) | |||||
| Non-GAAP Research and development | $ | (502 | ) | $ | (546 | ) | $ | (510 | ) | ||
| GAAP Selling, general and administrative | $ | (306 | ) | $ | (311 | ) | $ | (280 | ) | ||
| PPA effects | — | (1 | ) | (1 | ) | ||||||
| Restructuring | (1 | ) | (22 | ) | (6 | ) | |||||
| Share-based compensation | (42 | ) | (38 | ) | (34 | ) | |||||
| Other incidentals | (29 | ) | (5 | ) | (21 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (234 | ) | $ | (245 | ) | $ | (218 | ) | ||
| GAAP Operating income (loss) | $ | 856 | $ | 907 | $ | 825 | |||||
| PPA effects | (63 | ) | (77 | ) | (99 | ) | |||||
| Restructuring | (7 | ) | (84 | ) | (18 | ) | |||||
| Share-based compensation | (115 | ) | (107 | ) | (99 | ) | |||||
| Other incidentals | (39 | ) | (44 | ) | (44 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,080 | $ | 1,219 | $ | 1,085 | |||||
| GAAP Operating margin | 27.4 | % | 26.5 | % | 26.4 | % | |||||
| Non-GAAP Operating margin | 34.5 | % | 35.6 | % | 34.8 | % | |||||
| GAAP Income tax benefit (provision) | $ | (141 | ) | $ | (124 | ) | $ | (118 | ) | ||
| Income tax effect | 30 | 54 | 49 | ||||||||
| Non-GAAP Income tax benefit (provision) | $ | (171 | ) | $ | (178 | ) | $ | (167 | ) | ||
| GAAP Net income (loss) attributable to stockholders | $ | 639 | $ | 697 | $ | 615 | |||||
| PPA Effects | (63 | ) | (77 | ) | (99 | ) | |||||
| Restructuring | (7 | ) | (84 | ) | (18 | ) | |||||
| Share-based compensation | (115 | ) | (107 | ) | (99 | ) | |||||
| Other incidentals | (39 | ) | (44 | ) | (44 | ) | |||||
| Other adjustments: | |||||||||||
| Foreign exchange loss | (1 | ) | (6 | ) | (3 | ) | |||||
| Other financial expense | (5 | ) | (3 | ) | (3 | ) | |||||
| Income tax effect | 30 | 54 | 49 | ||||||||
| Results relating to equity-accounted investees | (1 | ) | (2 | ) | (2 | ) | |||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 840 | $ | 966 | $ | 834 | |||||
| GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 2.47 | $ | 2.68 | $ | 2.35 | |||||
| PPA Effects | (0.24 | ) | (0.30 | ) | (0.38 | ) | |||||
| Restructuring | (0.03 | ) | (0.32 | ) | (0.07 | ) | |||||
| Share-based compensation | (0.44 | ) | (0.41 | ) | (0.38 | ) | |||||
| Other incidentals | (0.15 | ) | (0.17 | ) | (0.17 | ) | |||||
| Other adjustments: | |||||||||||
| Foreign exchange loss | — | (0.02 | ) | (0.01 | ) | ||||||
| Other financial expense | (0.02 | ) | (0.01 | ) | (0.01 | ) | |||||
| Income tax effect | 0.11 | 0.21 | 0.19 | ||||||||
| Results relating to equity-accounted investees | — | (0.01 | ) | (0.01 | ) | ||||||
| Non-GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 3.24 | $ | 3.71 | $ | 3.19 | |||||
