Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | Full-year | |||||||||||||||||
|
December 31,
2021 |
October 3,
2021 |
December 31,
2020 | 2021 | 2020 | |||||||||||||||
| Revenue | $ | 3,039 | $ | 2,861 | $ | 2,507 | $ | 11,063 | $ | 8,612 | |||||||||
| GAAP Gross Profit | $ | 1,707 | $ | 1,583 | $ | 1,288 | $ | 6,067 | $ | 4,235 | |||||||||
| PPA Effects | (18 | ) | (20 | ) | (21 | ) | (74 | ) | (99 | ) | |||||||||
| Restructuring | — | — | — | — | (15 | ) | |||||||||||||
| Stock Based Compensation | (11 | ) | (10 | ) | (12 | ) | (45 | ) | (45 | ) | |||||||||
| Merger-related costs | — | — | — | — | (1 | ) | |||||||||||||
| Other incidentals | (4 | ) | (4 | ) | (5 | ) | (19 | ) | (5 | ) | |||||||||
| Non-GAAP Gross Profit | $ | 1,740 | $ | 1,617 | $ | 1,326 | $ | 6,205 | $ | 4,400 | |||||||||
| GAAP Gross margin | 56.2 | % | 55.3 | % | 51.4 | % | 54.8 | % | 49.2 | % | |||||||||
| Non-GAAP Gross margin | 57.3 | % | 56.5 | % | 52.9 | % | 56.1 | % | 51.1 | % | |||||||||
| GAAP Research and development | $ | (507 | ) | $ | (492 | ) | $ | (460 | ) | $ | (1,936 | ) | $ | (1,725 | ) | ||||
| Restructuring | — | — | (22 | ) | (1 | ) | (39 | ) | |||||||||||
| Stock based compensation | (44 | ) | (40 | ) | (41 | ) | (165 | ) | (159 | ) | |||||||||
| Merger-related costs | — | — | — | — | (1 | ) | |||||||||||||
| Other incidentals | — | (2 | ) | (1 | ) | (2 | ) | (6 | ) | ||||||||||
| Non-GAAP Research and development | $ | (463 | ) | $ | (450 | ) | $ | (396 | ) | $ | (1,768 | ) | $ | (1,520 | ) | ||||
| GAAP Selling, general and administrative | $ | (257 | ) | $ | (243 | ) | $ | (221 | ) | $ | (956 | ) | $ | (879 | ) | ||||
| PPA effects | (1 | ) | (2 | ) | (2 | ) | (5 | ) | (7 | ) | |||||||||
| Restructuring | — | — | (16 | ) | — | (24 | ) | ||||||||||||
| Stock based compensation | (33 | ) | (31 | ) | (36 | ) | (143 | ) | (180 | ) | |||||||||
| Merger-related costs | — | — | — | — | (6 | ) | |||||||||||||
| Other incidentals | (5 | ) | (3 | ) | — | (12 | ) | (8 | ) | ||||||||||
| Non-GAAP Selling, general and administrative | $ | (218 | ) | $ | (207 | ) | $ | (167 | ) | $ | (796 | ) | $ | (654 | ) | ||||
| GAAP amortization of acquisition-related intangible assets | $ | (136 | ) | $ | (137 | ) | $ | (148 | ) | $ | (592 | ) | $ | (1,327 | ) | ||||
| PPA effects | (136 | ) | (137 | ) | (148 | ) | (592 | ) | (1,327 | ) | |||||||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| GAAP Other income (expense) | $ | — | $ | — | $ | 4 | $ | — | $ | 114 | |||||||||
| Other incidentals | (1 | ) | 1 | 3 | — | 112 | |||||||||||||
| Non-GAAP Other income (expense) | $ | 1 | $ | (1 | ) | $ | 1 | $ | — | $ | 2 | ||||||||
| GAAP Operating income (loss) | $ | 807 | $ | 711 | $ | 463 | $ | 2,583 | $ | 418 | |||||||||
| PPA effects | (155 | ) | (159 | ) | (171 | ) | (671 | ) | (1,433 | ) | |||||||||
| Restructuring | — | 0 | (38 | ) | (1 | ) | (78 | ) | |||||||||||
| Stock based compensation | (88 | ) | (81 | ) | (89 | ) | (353 | ) | (384 | ) | |||||||||
| Merger-related costs | — | — | — | — | (8 | ) | |||||||||||||
| Other incidentals | (10 | ) | (8 | ) | (3 | ) | (33 | ) | 93 | ||||||||||
| Non-GAAP Operating income (loss) | $ | 1,060 | $ | 959 | $ | 764 | $ | 3,641 | $ | 2,228 | |||||||||
| GAAP Operating margin | 26.6 | % | 24.9 | % | 18.5 | % | 23.3 | % | 4.9 | % | |||||||||
| Non-GAAP Operating margin | 34.9 | % | 33.5 | % | 30.5 | % | 32.9 | % | 25.9 | % | |||||||||
| GAAP Financial income (expense) | $ | (123 | ) | $ | (93 | ) | $ | (137 | ) | $ | (403 | ) | $ | (417 | ) | ||||
| Foreign exchange gain (loss) | (1 | ) | 1 | (6 | ) | (1 | ) | (12 | ) | ||||||||||
| Gain (loss) on extinguishment of long-term debt | (22 | ) | — | (60 | ) | (22 | ) | (60 | ) | ||||||||||
| Other financial income (expense) | (7 | ) | — | 19 | (15 | ) | 12 | ||||||||||||
| Non-GAAP Financial income (expense) | $ | (93 | ) | $ | (94 | ) | $ | (90 | ) | $ | (365 | ) | $ | (357 | ) | ||||
