CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

Second Quarter of

First Two Quarters of

2024

2023

2024

2023

Revenue:

Product

$          320.4

$          490.5

$          687.5

$          924.9

Subscription and services

550.4

503.1

1,136.6

984.1

Total revenue

870.8

993.6

1,824.1

1,909.0

Cost of sales:

Product

176.5

233.9

384.0

450.1

Subscription and services

120.4

125.0

244.8

240.4

Amortization of purchased intangible assets

28.0

30.2

55.8

53.2

Total cost of sales

324.9

389.1

684.6

743.7

Gross margin

545.9

604.5

1,139.5

1,165.3

Gross margin (%)

62.7 %

60.8 %

62.5 %

61.0 %

Operating expense:

Research and development

161.5

174.8

331.7

334.1

Sales and marketing

142.5

155.3

289.3

290.7

General and administrative

148.7

141.3

282.8

252.0

Restructuring

5.1

7.6

11.7

14.3

Amortization of purchased intangible assets

26.5

31.9

53.2

43.6

Total operating expense

484.3

510.9

968.7

934.7

Operating income

61.6

93.6

170.8

230.6

Non-operating income (expense), net:

Divestitures gain, net

1,714.1

1.1

1,717.6

5.1

Interest expense, net

(18.1)

(46.7)

(63.3)

(66.4)

Income from equity method investments, net

4.3

8.0

9.9

19.4

Other income, net

0.1

1.5

—

29.4

Total non-operating income (expense), net

1,700.4

(36.1)

1,664.2

(12.5)

Income before taxes

1,762.0

57.5

1,835.0

218.1

Income tax provision

445.6

12.9

461.4

44.7

Net income

$       1,316.4

$            44.6

1,373.6

173.4

Earnings per share:

Basic

$            5.37

$            0.18

$            5.60

$            0.70

Diluted

$            5.34

$            0.18

$            5.56

$            0.70

Shares used in calculating earnings per share:

Basic

245.1

248.1

245.3

247.7

Diluted

246.4

249.0

246.9

248.9