GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2023

2022

2023

2022

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$   993.6

$   941.2

$ 1,909.0

$ 1,934.9

GROSS MARGIN:

GAAP gross margin:

$   604.5

60.8 %

$   537.5

57.1 %

$ 1,165.3

61.0 %

$ 1,087.1

56.2 %

Amortization of purchased intangible assets

(A)

30.2

21.0

53.2

43.5

Acquisition / divestiture items

(B)

0.2

—

0.4

—

Stock-based compensation / deferred compensation

(C)

4.1

3.1

7.6

5.3

Restructuring and other costs

(D)

(1.0)

—

(0.7)

1.1

Non-GAAP gross margin:

$   638.0

64.2 %

$   561.6

59.7 %

$ 1,225.8

64.2 %

$ 1,137.0

58.8 %

OPERATING EXPENSES:

GAAP operating expenses:

$   510.9

51.4 %

$   402.6

42.8 %

$   934.7

49.0 %

$   795.3

41.1 %

Amortization of purchased intangible assets

(A)

(31.9)

(11.3)

(43.6)

(23.4)

Acquisition / divestiture items

(B)

(26.3)

(7.3)

(33.1)

(11.2)

Stock-based compensation / deferred compensation

(C)

(38.0)

(23.1)

(69.9)

(45.9)

Restructuring and other costs

(D)

(7.7)

(10.0)

(19.4)

(21.6)

Non-GAAP operating expenses:

$   407.0

41.0 %

$   350.9

37.3 %

$   768.7

40.3 %

$   693.2

35.8 %

OPERATING INCOME:

GAAP operating income:

$     93.6

9.4 %

$   134.9

14.3 %

$   230.6

12.1 %

$   291.8

15.1 %

Amortization of purchased intangible assets

(A)

62.1

32.3

96.8

66.9

Acquisition / divestiture items

(B)

26.5

7.3

33.5

11.2

Stock-based compensation / deferred compensation

(C)

42.1

26.2

77.5

51.2

Restructuring and other costs

(D)

6.7

10.0

18.7

22.7

Non-GAAP operating income:

$   231.0

23.2 %

$   210.7

22.4 %

$   457.1

23.9 %

$   443.8

22.9 %

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating income (expense), net:

$   (36.1)

$     86.7

$   (12.5)

$     68.3

Acquisition / divestiture items

(B)

(0.9)

(106.3)

(32.5)

(97.4)

Deferred compensation

(C)

(1.7)

7.0

(3.7)

10.3

Restructuring and other costs

(D)

—

—

1.3

0.1

Non-GAAP non-operating expense, net:

$   (38.7)

$   (12.6)

$   (47.4)

$   (18.7)

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

GAAP
and Non-
GAAP
Tax Rate
%

(G)

(G)

(G)

(G)

INCOME TAX PROVISION:

GAAP income tax provision:

$     12.9

22.4 %

$     53.6

24.2 %

$     44.7

20.5 %

$     81.8

22.7 %

Non-GAAP items tax effected

(E)

30.2

(5.7)

41.4

12.4

Difference in GAAP and Non-GAAP tax rate

(F)

(9.8)

(11.4)

(13.3)

(15.5)

Non-GAAP income tax provision:

$     33.3

17.3 %

$     36.5

18.4 %

$     72.8

17.8 %

$     78.7

18.5 %

NET INCOME:

GAAP net income:

$     44.6

$   168.0

$   173.4

$   278.3

Amortization of purchased intangible assets

(A)

62.1

32.3

96.8

66.9

Acquisition / divestiture items

(B)

25.6

(99.0)

1.0

(86.2)

Stock-based compensation / deferred compensation

(C)

40.4

33.2

73.8

61.5

Restructuring and other costs

(D)

6.7

10.0

20.0

22.8

Non-GAAP tax adjustments

(E) - (F)

(20.4)

17.1

(28.1)

3.1

Non-GAAP net income:

$   159.0

$   161.6

$   336.9

$   346.4

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share:

$     0.18

$     0.67

$     0.70

$     1.11

Amortization of purchased intangible assets

(A)

0.25

0.13

0.39

0.27

Acquisition / divestiture items

(B)

0.10

(0.39)

—

(0.34)

Stock-based compensation / deferred compensation

(C)

0.16

0.13

0.29

0.24

Restructuring and other costs

(D)

0.03

0.04

0.08

0.09

Non-GAAP tax adjustments

(E) - (F)

(0.08)

0.06

(0.11)

0.01

Non-GAAP diluted net income per share:

$     0.64

$     0.64

$     1.35

$     1.38

ADJUSTED EBITDA:

GAAP net income:

$     44.6

$   168.0

$   173.4

$   278.3

Non-operating income (expense), net and income tax provision

49.0

(33.1)

57.2

13.5

GAAP operating income:

93.6

134.9

230.6

291.8

Amortization of purchased intangible assets

(A)

62.1

32.3

96.8

66.9

Acquisition / divestiture items

(B)

26.5

7.3

33.5

11.2

Stock-based compensation / deferred compensation

(C)

42.1

26.2

77.5

51.2

Restructuring and other costs

(D)

6.7

10.0

18.7

22.7

Non-GAAP operating income:

231.0

210.7

457.1

443.8

Depreciation expense and cloud computing amortization

12.5

11.0

23.8

21.5

Income from equity method investments, net

8.0

5.8

19.4

15.5

Adjusted EBITDA:

$   251.5

25.3 %

$   227.5

24.2 %

$   500.3

26.2 %

$   480.8

24.8 %

Third Quarter of
2023

Year 2023

Low End

High
End

Low End

High
End

FORECASTED DILUTED NET INCOME PER SHARE:

Forecasted GAAP diluted net income per share:

$     0.20

$  0.27

$     1.22

$  1.37

Amortization of purchased intangible assets

(A)

0.25

0.25

0.88

0.88

Acquisition / divestiture items

(B)

0.01

0.01

0.03

0.03

Stock-based compensation / deferred compensation

(C)

0.16

0.16

0.61

0.61

Restructuring and other costs

(D)

0.02

0.02

0.12

0.12

Non-GAAP tax adjustments

(E) - (F)

(0.08)

(0.07)

(0.29)

(0.28)

Forecasted non-GAAP diluted net income per share:

$     0.56

$  0.64

$     2.57

$  2.73