NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| July 2, 2023 | April 2, 2023 | July 3, 2022 | |||||||||
| Revenue | $ | 3,299 | $ | 3,121 | $ | 3,312 | |||||
| GAAP Gross Profit | $ | 1,881 | $ | 1,770 | $ | 1,882 | |||||
| PPA Effects | (14 | ) | (13 | ) | (14 | ) | |||||
| Restructuring | — | 2 | 3 | ||||||||
| Share-based compensation | (13 | ) | (13 | ) | (12 | ) | |||||
| Other incidentals | (18 | ) | (22 | ) | (10 | ) | |||||
| Non-GAAP Gross Profit | $ | 1,926 | $ | 1,816 | $ | 1,915 | |||||
| GAAP Gross margin | 57.0 | % | 56.7 | % | 56.8 | % | |||||
| Non-GAAP Gross margin | 58.4 | % | 58.2 | % | 57.8 | % | |||||
| GAAP Research and development | $ | (589 | ) | $ | (577 | ) | $ | (542 | ) | ||
| Restructuring | — | (14 | ) | 1 | |||||||
| Share-based compensation | (51 | ) | (52 | ) | (45 | ) | |||||
| Other incidentals | (1 | ) | (1 | ) | (3 | ) | |||||
| Non-GAAP Research and development | $ | (537 | ) | $ | (510 | ) | $ | (495 | ) | ||
| GAAP Selling, general and administrative | $ | (274 | ) | $ | (280 | ) | $ | (265 | ) | ||
| PPA effects | — | (1 | ) | (1 | ) | ||||||
| Restructuring | — | (6 | ) | — | |||||||
| Share-based compensation | (38 | ) | (34 | ) | (32 | ) | |||||
| Other incidentals | (2 | ) | (21 | ) | (3 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (234 | ) | $ | (218 | ) | $ | (229 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (81 | ) | $ | (85 | ) | $ | (134 | ) | ||
| PPA effects | (81 | ) | (85 | ) | (134 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | — | $ | (3 | ) | $ | 2 | ||||
| Non-GAAP Other income (expense) | $ | — | $ | (3 | ) | $ | 2 | ||||
| GAAP Operating income (loss) | $ | 937 | $ | 825 | $ | 943 | |||||
| PPA effects | (95 | ) | (99 | ) | (149 | ) | |||||
| Restructuring | — | (18 | ) | 4 | |||||||
| Share-based compensation | (102 | ) | (99 | ) | (89 | ) | |||||
| Other incidentals | (21 | ) | (44 | ) | (16 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,155 | $ | 1,085 | $ | 1,193 | |||||
| GAAP Operating margin | 28.4 | % | 26.4 | % | 28.5 | % | |||||
| Non-GAAP Operating margin | 35.0 | % | 34.8 | % | 36.0 | % | |||||
| GAAP Financial income (expense) | $ | (74 | ) | $ | (82 | ) | $ | (128 | ) | ||
| Foreign exchange gain (loss) | (3 | ) | (3 | ) | (2 | ) | |||||
| Gain (loss) on extinguishment of long-term debt | — | — | (18 | ) | |||||||
| Other financial income (expense) | 2 | (3 | ) | (11 | ) | ||||||
| Non-GAAP Financial income (expense) | $ | (73 | ) | $ | (76 | ) | $ | (97 | ) | ||
| GAAP Income tax benefit (provision) | $ | (158 | ) | $ | (118 | ) | |||||
| Income tax effect | 22 | 49 | |||||||||
| Non-GAAP Income tax benefit (provision) | $ | (180 | ) | $ | (167 | ) | |||||
| GAAP Results relating to equity-accounted investees | $ | (1 | ) | $ | (2 | ) | |||||
| Results relating to equity-accounted investees | (1 | ) | (2 | ) | |||||||
| Non-GAAP Results relating to equity-accounted investees | $ | — | $ | — | |||||||
| GAAP Net income (loss) | $ | 704 | $ | 623 | |||||||
| Less: Net income (loss) attributable to non-controlling interests | 6 | 8 | |||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 698 | $ | 615 | |||||||
| GAAP Net income (loss) attributable to stockholders | $ | 698 | $ | 615 | |||||||
| PPA Effects | (95 | ) | (99 | ) | |||||||
| Restructuring | — | (18 | ) | ||||||||
| Share-based compensation | (102 | ) | (99 | ) | |||||||
| Other incidentals | (21 | ) | (44 | ) | |||||||
| Other adjustments | 20 | 41 | |||||||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 896 | $ | 834 | |||||||
| GAAP Diluted earnings per share | $ | 2.67 | $ | 2.35 | |||||||
| Non-GAAP Diluted earnings per share | $ | 3.43 | $ | 3.19 | |||||||
