| (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, 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 (Loss) to Adjusted EBITDA |
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| July 1,
2023 | April 1,
2023 | June 25,
2022 | July 1,
2023 | June 25,
2022 | ||||||||||||||||
| GAAP net income (loss) | $ | 27 | $ | (139 | ) | $ | 447 | $ | (112 | ) | $ | 1,233 | ||||||||
| Interest expense | 28 | 25 | 25 | 53 | 38 | |||||||||||||||
| Other (income) expense, net | (46 | ) | (43 | ) | 4 | (89 | ) | 46 | ||||||||||||
| Income tax provision (benefit) | (23 | ) | 13 | 54 | (10 | ) | 167 | |||||||||||||
| Equity income in investee | (6 | ) | (1 | ) | (4 | ) | (7 | ) | (7 | ) | ||||||||||
| Stock-based compensation | 348 | 305 | 259 | 653 | 433 | |||||||||||||||
| Depreciation and amortization | 156 | 159 | 157 | 315 | 287 | |||||||||||||||
| Amortization of acquisition-related intangibles | 693 | 823 | 1,023 | 1,516 | 1,502 | |||||||||||||||
| Acquisition-related and other costs | 47 | 115 | 174 | 162 | 407 | |||||||||||||||
| Adjusted EBITDA | $ | 1,224 | $ | 1,257 | $ | 2,139 | $ | 2,481 | $ | 4,106 | ||||||||||
