| (1) | The Data Center segment primarily includes server microprocessors (CPUs) and graphics processing units (GPUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs) and Adaptive System-on-Chip (SoC) products for data centers. | |
| The Client segment primarily includes CPUs, accelerated processing units that integrate microprocessors and GPUs (APUs), and chipsets for desktop and notebook personal computers. | ||
| The Gaming segment primarily includes discrete GPUs, semi-custom SoC products and development services. | ||
| The Embedded segment primarily includes embedded CPUs and GPUs, APUs, FPGAs, and Adaptive SoC products. | ||
| From time to time, the Company may also sell or license portions of its IP portfolio. | ||
| All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related intangible asset, employee stock-based compensation expense, acquisition-related and other costs, and licensing gain. | ||
| (2) | Reconciliation of GAAP Net Income to Adjusted EBITDA |
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30,
2023 | July 1,
2023 | September 24,
2022 | September 30,
2023 | September 24,
2022 | |||||||||||||||
| GAAP net income | $ | 299 | $ | 27 | $ | 66 | $ | 187 | $ | 1,299 | |||||||||
| Interest expense | 26 | 28 | 31 | 79 | 69 | ||||||||||||||
| Other (income) expense, net | (59 | ) | (46 | ) | (22 | ) | (148 | ) | 24 | ||||||||||
| Income tax provision (benefit) | (39 | ) | (23 | ) | (135 | ) | (49 | ) | 32 | ||||||||||
| Equity income in investee | (3 | ) | (6 | ) | (4 | ) | (10 | ) | (11 | ) | |||||||||
| Stock-based compensation | 353 | 348 | 269 | 1,006 | 702 | ||||||||||||||
| Depreciation and amortization | 163 | 156 | 163 | 478 | 450 | ||||||||||||||
| Amortization of acquisition-related intangibles | 660 | 693 | 1,002 | 2,176 | 2,504 | ||||||||||||||
| Acquisition-related and other costs | 39 | 47 | 57 | 201 | 464 | ||||||||||||||
| Adjusted EBITDA | $ | 1,439 | $ | 1,224 | $ | 1,427 | $ | 3,920 | $ | 5,533 | |||||||||
