NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| October 2, 2022 | July 3, 2022 | October 3, 2021 | |||||||||
| Revenue | $ | 3,445 | $ | 3,312 | $ | 2,861 | |||||
| GAAP Gross Profit | $ | 1,967 | $ | 1,882 | $ | 1,583 | |||||
| PPA Effects | (15 | ) | (14 | ) | (20 | ) | |||||
| Restructuring | — | 3 | — | ||||||||
| Stock Based Compensation | (12 | ) | (12 | ) | (10 | ) | |||||
| Other incidentals | (5 | ) | (10 | ) | (4 | ) | |||||
| Non-GAAP Gross Profit | $ | 1,999 | $ | 1,915 | $ | 1,617 | |||||
| GAAP Gross margin | 57.1 | % | 56.8 | % | 55.3 | % | |||||
| Non-GAAP Gross margin | 58.0 | % | 57.8 | % | 56.5 | % | |||||
| GAAP Research and development | $ | (548 | ) | $ | (542 | ) | $ | (492 | ) | ||
| Restructuring | — | 1 | — | ||||||||
| Stock based compensation | (45 | ) | (45 | ) | (40 | ) | |||||
| Other incidentals | (1 | ) | (3 | ) | (2 | ) | |||||
| Non-GAAP Research and development | $ | (502 | ) | $ | (495 | ) | $ | (450 | ) | ||
| GAAP Selling, general and administrative | $ | (289 | ) | $ | (265 | ) | $ | (243 | ) | ||
| PPA effects | (2 | ) | (1 | ) | (2 | ) | |||||
| Stock based compensation | (32 | ) | (32 | ) | (31 | ) | |||||
| Other incidentals | (27 | ) | (3 | ) | (3 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (228 | ) | $ | (229 | ) | $ | (207 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (131 | ) | $ | (134 | ) | $ | (137 | ) | ||
| PPA effects | (131 | ) | (134 | ) | (137 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | 2 | $ | 2 | $ | — | |||||
| Non-GAAP Other income (expense) | $ | 2 | $ | 2 | $ | (1 | ) | ||||
| GAAP Operating income (loss) | $ | 1,001 | $ | 943 | $ | 711 | |||||
| PPA effects | (148 | ) | (149 | ) | (159 | ) | |||||
| Restructuring | — | 4 | — | ||||||||
| Stock based compensation | (89 | ) | (89 | ) | (81 | ) | |||||
| Other incidentals | (33 | ) | (16 | ) | (8 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,271 | $ | 1,193 | $ | 959 | |||||
| GAAP Operating margin | 29.1 | % | 28.5 | % | 24.9 | % | |||||
| Non-GAAP Operating margin | 36.9 | % | 36.0 | % | 33.5 | % | |||||
| GAAP Financial income (expense) | $ | (98 | ) | $ | (128 | ) | $ | (93 | ) | ||
| Foreign exchange gain (loss) | (2 | ) | (2 | ) | 1 | ||||||
| Gain (loss) on extinguishment of long-term debt | — | (18 | ) | — | |||||||
| Other financial income (expense) | (5 | ) | (11 | ) | — | ||||||
| Non-GAAP Financial income (expense) | $ | (91 | ) | $ | (97 | ) | $ | (94 | ) | ||
