REPORTING SEGMENTS
(In millions)
(Unaudited)

Reporting Segments

AECO

Field Systems

T&L

FIRST QUARTER OF 2024:

Segment revenue

$                   339.1

$                   419.2

$                   195.0

Segment operating income

$                   126.7

$                     98.3

$                     36.3

Segment operating income as a % of segment revenue                 

37.4 %

23.4 %

18.6 %

FIRST QUARTER OF 2023:

Segment revenue

$                   288.1

$                   479.9

$                   147.4

Segment operating income

$                     95.4

$                   137.4

$                     20.3

Segment operating income as a % of segment revenue

33.1 %

28.6 %

13.8 %

GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions, except per share data)
(Unaudited)

First Quarter of

2024

2023

Dollar Amount

% of Revenue

Dollar Amount

% of Revenue

REVENUE:

GAAP revenue:

$                953.3

$                915.4

GROSS MARGIN:

GAAP gross margin:

$                593.6

62.3 %

$                560.8

61.3 %

Amortization of purchased intangible assets

(A)

27.8

23.0

Acquisition / divestiture items

(B)

—

0.2

Stock-based compensation / deferred compensation

(C)

4.3

3.5

Restructuring and other costs

(D)

1.4

0.3

Non-GAAP gross margin:

$                627.1

65.8 %

$                587.8

64.2 %

OPERATING EXPENSES:

GAAP operating expenses:

$                484.4

50.8 %

$                423.8

46.3 %

Amortization of purchased intangible assets

(A)

(26.7)

(11.7)

Acquisition / divestiture items

(B)

(23.9)

(6.8)

Stock-based compensation / deferred compensation

(C)

(34.5)

(31.9)

Restructuring and other costs

(D)

(6.6)

(11.7)

Non-GAAP operating expenses:

$                392.7

41.2 %

$                361.7

39.5 %

OPERATING INCOME:

GAAP operating income:

$                109.2

11.5 %

$                137.0

15.0 %

Amortization of purchased intangible assets

(A)

54.5

34.7

Acquisition / divestiture items

(B)

23.9

7.0

Stock-based compensation / deferred compensation         

(C)

38.8

35.4

Restructuring and other costs

(D)

8.0

12.0

Non-GAAP operating income:

$                234.4

24.6 %

$                226.1

24.7 %

NON-OPERATING INCOME (EXPENSE), NET:

GAAP non-operating (expense) income, net:

$                (36.2)

$                  23.6

Acquisition / divestiture items

(B)

(3.4)

(31.6)

Deferred compensation

(C)

(2.4)

(2.0)

Restructuring and other costs

(D)

—

1.3

Non-GAAP non-operating expense, net:

$                (42.0)

$                  (8.7)

GAAP and Non-
GAAP Tax Rate
%

GAAP and Non-
GAAP Tax Rate
%

(G)

(G)

INCOME TAX PROVISION:

GAAP income tax provision:

$                  15.8

21.6 %

$                  31.8

19.8 %

Non-GAAP items tax effected

(E)

25.8

11.2

Difference in GAAP and Non-GAAP tax rate

(F)

(8.3)

(3.5)

Non-GAAP income tax provision:

$                  33.3

17.3 %

$                  39.5

18.2 %

NET INCOME:

GAAP net income:

$                  57.2

$                128.8

Amortization of purchased intangible assets

(A)

54.5

34.7

Acquisition / divestiture items

(B)

20.5

(24.6)

Stock-based compensation / deferred compensation

(C)

36.4

33.4

Restructuring and other costs

(D)

8.0

13.3

Non-GAAP tax adjustments

(E) - (F)

(17.5)

(7.7)

Non-GAAP net income:

$                159.1

$                177.9

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share:

$                  0.23

$                  0.52

Amortization of purchased intangible assets

(A)

0.22

0.14

Acquisition / divestiture items

(B)

0.08

(0.10)

Stock-based compensation / deferred compensation

(C)

0.15

0.14

Restructuring and other costs

(D)

0.03

0.05

Non-GAAP tax adjustments

(E) - (F)

(0.07)

(0.03)

Non-GAAP diluted net income per share:

$                  0.64

$                  0.72

ADJUSTED EBITDA:

GAAP operating income:

$                109.2

11.5 %

$                137.0

15.0 %

Amortization of purchased intangible assets

(A)

54.5

34.7

Acquisition / divestiture items

(B)

23.9

7.0

Stock-based compensation / deferred compensation

(C)

38.8

35.4

Restructuring and other costs

(D)

8.0

12.0

Non-GAAP operating income:

234.4

24.6 %

226.1

24.7 %

Depreciation expense and cloud computing amortization

10.9

11.3

Income from equity method investments, net

5.6

11.4

Adjusted EBITDA:

$                250.9

26.3 %

$                248.8

27.2 %