Supplemental Reconciliations of GAAP Actuals to Non-GAAP Actuals
Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the reconciliations from U.S. GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable U.S. GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
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Three Months Ended |
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(In Millions, Except Per Share Amounts) |
Oct 1, 2022 |
Sep 25, 2021 |
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|
GAAP net revenue |
$ 15,338 |
$ 19,192 |
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|
NAND memory business |
— |
(1,105) |
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|
Non-GAAP net revenue |
$ 15,338 |
$ 18,087 |
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GAAP gross margin |
$ 6,535 |
$ 10,746 |
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Acquisition-related adjustments |
330 |
322 |
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Share-based compensation |
172 |
92 |
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|
NAND memory business |
— |
(616) |
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Non-GAAP gross margin |
$ 7,037 |
$ 10,544 |
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|
GAAP gross margin percentage |
42.6 % |
56.0 % |
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Acquisition-related adjustments |
2.2 % |
1.7 % |
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Share-based compensation |
1.1 % |
0.5 % |
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|
NAND memory business |
— % |
0.1 % |
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Non-GAAP gross margin percentage1 |
45.9 % |
58.3 % |
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|
GAAP R&D and MG&A |
$ 6,046 |
$ 5,477 |
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Acquisition-related adjustments |
(43) |
(53) |
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|
Share-based compensation |
(621) |
(450) |
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|
NAND memory business |
— |
(174) |
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|
Non-GAAP R&D and MG&A |
$ 5,382 |
$ 4,800 |
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|
GAAP operating income (loss) |
$ (175) |
$ 5,227 |
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|
Acquisition-related adjustments |
373 |
375 |
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|
Restructuring and other charges |
664 |
42 |
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|
Share-based compensation |
793 |
542 |
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|
NAND memory business |
— |
(442) |
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|
Non-GAAP operating income |
$ 1,655 |
$ 5,744 |
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|
GAAP operating margin |
(1.1) % |
27.2 % |
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|
Acquisition-related adjustments |
2.4 % |
2.0 % |
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|
Restructuring and other charges |
4.3 % |
0.2 % |
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|
Share-based compensation |
5.2 % |
2.8 % |
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|
NAND memory business |
— % |
(0.6) % |
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|
Non-GAAP operating margin 1 |
10.8 % |
31.8 % |
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1 Our reconciliations of GAAP to non-GAAP prior year gross margin and operating margin percentage reflect the exclusion of our NAND memory business from net revenue. |
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|
GAAP tax rate |
642.0 % |
0.5 % |
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|
Tax Reform |
(290.9) % |
— % |
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|
Income tax effects |
(389.8) % |
(4.7) % |
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|
Non-GAAP tax rate |
(38.7) % |
(4.2) % |
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|
(In Millions, Except Per Share Amounts) |
Oct 1, 2022 |
Sep 25, 2021 |
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|
GAAP net income (loss) |
$ 1,019 |
$ 6,823 |
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|
Acquisition-related adjustments |
373 |
375 |
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|
Restructuring and other charges |
664 |
42 |
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|
Share-based compensation |
793 |
542 |
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|
(Gains) losses from divestiture |
(39) |
— |
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(Gains) losses on equity investments, net |
151 |
(1,707) |
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|
NAND memory business |
— |
(442) |
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|
Tax Reform |
(226) |
— |
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|
Income tax effects |
(303) |
275 |
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|
Non-GAAP net income |
$ 2,432 |
$ 5,908 |
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|
GAAP earnings (loss) per share—diluted |
$ 0.25 |
$ 1.67 |
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|
Acquisition-related adjustments |
0.09 |
0.09 |
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|
Restructuring and other charges |
0.16 |
0.01 |
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Share-based compensation |
0.19 |
0.13 |
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|
(Gains) losses from divestiture |
(0.01) |
— |
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(Gains) losses on equity investments, net |
0.03 |
(0.42) |
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|
NAND memory business |
— |
(0.10) |
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|
Tax Reform |
(0.05) |
— |
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Income tax effects |
(0.07) |
0.07 |
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|
Non-GAAP earnings per share—diluted |
$ 0.59 |
$ 1.45 |
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