GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2024

2023

2024

2023

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

Dollar
Amount

% of
Revenue

REVENUE:

GAAP revenue:

$   870.8

$   993.6

$ 1,824.1

$ 1,909.0

GROSS MARGIN:

GAAP gross margin:

$   545.9

62.7 %

$   604.5

60.8 %

$ 1,139.5

62.5 %

$ 1,165.3

61.0 %

Amortization of purchased intangible assets

(A)

28.0

30.2

55.8

53.2

Acquisition / divestiture items

(B)

—

0.2

—

0.4

Stock-based compensation / deferred compensation

(C)

4.2

4.1

8.5

7.6

Restructuring and other costs

(D)

0.6

(1.0)

2.0

(0.7)

Non-GAAP gross margin:

$   578.7

66.5 %

$   638.0

64.2 %

$ 1,205.8

66.1 %

$ 1,225.8

64.2 %

OPERATING EXPENSES:

GAAP operating expenses:

$   484.3

55.6 %

$   510.9

51.4 %

$   968.7

53.1 %

$   934.7

49.0 %

Amortization of purchased intangible assets

(A)

(26.5)

(31.9)

(53.2)

(43.6)

Acquisition / divestiture items

(B)

(33.9)

(26.3)

(57.8)

(33.1)

Stock-based compensation / deferred compensation

(C)

(33.9)

(38.0)

(68.4)

(69.9)

Restructuring and other costs

(D)

(5.7)

(7.7)

(12.3)

(19.4)

Non-GAAP operating expenses:

$   384.3

44.1 %

$   407.0

41.0 %

$   777.0

42.6 %

$   768.7

40.3 %

OPERATING INCOME:

GAAP operating income:

$     61.6

7.1 %

$     93.6

9.4 %

$   170.8

9.4 %

$   230.6

12.1 %

Amortization of purchased intangible assets

(A)

54.5

62.1

109.0

96.8

Acquisition / divestiture items

(B)

33.9

26.5

57.8

33.5

Stock-based compensation / deferred compensation

(C)

38.1

42.1

76.9

77.5

Restructuring and other costs

(D)

6.3

6.7

14.3

18.7

Non-GAAP operating income:

$   194.4

22.3 %

$   231.0

23.2 %

$   428.8

23.5 %

$   457.1

23.9 %

GAAP non-operating income (expense), net:

$ 1,700.4

$   (36.1)

$ 1,664.2

$   (12.5)

Acquisition / divestiture items

(B)

(1,716.1)

(0.9)

(1,719.5)

(32.5)

Deferred compensation

(C)

(0.7)

(1.7)

(3.1)

(3.7)

Restructuring and other costs

(D)

5.4

—

5.4

1.3

Non-GAAP non-operating expense, net:

$   (11.0)

$   (38.7)

$   (53.0)

$   (47.4)

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:

$   445.6

25.3 %

$     12.9

22.4 %

$   461.4

25.1 %

$     44.7

20.5 %

Non-GAAP items tax effected

(E)

(399.4)

30.2

(373.6)

41.4

Difference in GAAP and Non-GAAP tax rate

(F)

(14.7)

(9.8)

(23.0)

(13.3)

Non-GAAP income tax provision:

$     31.5

17.2 %

$     33.3

17.3 %

$     64.8

17.2 %

$     72.8

17.8 %

NET INCOME:

GAAP net income:

$ 1,316.4

$     44.6

$ 1,373.6

$   173.4

Amortization of purchased intangible assets

(A)

54.5

62.1

109.0

96.8

Acquisition / divestiture items

(B)

(1,682.2)

25.6

(1,661.7)

1.0

Stock-based compensation / deferred compensation

(C)

37.4

40.4

73.8

73.8

Restructuring and other costs

(D)

11.7

6.7

19.7

20.0

Non-GAAP tax adjustments

(E) - (F)

414.1

(20.4)

396.6

(28.1)

Non-GAAP net income:

$   151.9

$   159.0

$   311.0

$   336.9

DILUTED NET INCOME PER SHARE:

GAAP diluted net income per share:

$     5.34

$     0.18

$     5.56

$     0.70

Amortization of purchased intangible assets

(A)

0.22

0.25

0.45

0.39

Acquisition / divestiture items

(B)

(6.82)

0.10

(6.73)

—

Stock-based compensation / deferred compensation

(C)

0.15

0.16

0.30

0.29

Restructuring and other costs

(D)

0.05

0.03

0.08

0.08

Non-GAAP tax adjustments

(E) - (F)

1.68

(0.08)

1.60

(0.11)

Non-GAAP diluted net income per share:

$     0.62

$     0.64

$     1.26

$     1.35

ADJUSTED EBITDA:

GAAP operating income:

$     61.6

7.1 %

$     93.6

9.4 %

$   170.8

9.4 %

$   230.6

12.1 %

Amortization of purchased intangible assets

(A)

54.5

62.1

109.0

96.8

Acquisition / divestiture items

(B)

33.9

26.5

57.8

33.5

Stock-based compensation / deferred compensation

(C)

38.1

42.1

76.9

77.5

Restructuring and other costs

(D)

6.3

6.7

14.3

18.7

Non-GAAP operating income:

194.4

22.3 %

231.0

23.2 %

428.8

23.5 %

457.1

23.9 %

Depreciation expense and cloud computing amortization

12.1

12.5

23.0

23.8

Income from equity method investments, net

7.5

8.0

13.1

19.4

Adjusted EBITDA:

$   214.0

24.6 %

$   251.5

25.3 %

$   464.9

25.5 %

$   500.3

26.2 %

Third Quarter of
2024

Year 2024

Low End

High
End

Low End

High
End

FORECASTED DILUTED NET INCOME PER SHARE:

Forecasted GAAP diluted net income per share:

$     0.28

$  0.34

$     6.41

$  6.54

Amortization of purchased intangible assets

(A)

0.18

0.18

0.81

0.81

Acquisition / divestiture items

(B)

0.02

0.02

(6.75)

(6.75)

Stock-based compensation / deferred compensation

(C)

0.14

0.14

0.60

0.60

Restructuring and other costs

(D)

0.02

0.02

0.12

0.12

Non-GAAP tax adjustments

(E) - (F)

(0.06)

(0.06)

1.48

1.49

Forecasted non-GAAP diluted net income per share:

$     0.58

$  0.64

$     2.67

$  2.81