| (1) | The Data Center segment primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers. | |
| The Client segment primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers. | ||
| The Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services. | ||
| The Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), 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, inventory loss at contract manufacturer, and licensing gain. |
| (2) | Reconciliation of GAAP Net Income to Adjusted EBITDA |
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| (Millions) (Unaudited) | September 28,
2024 | June 29,
2024 | September 30,
2023 | September 28,
2024 | September 30,
2023 | ||||||||||||||
| GAAP net income | $ | 771 | $ | 265 | $ | 299 | $ | 1,159 | $ | 187 | |||||||||
| Interest expense | 23 | 25 | 26 | 73 | 79 | ||||||||||||||
| Other (income) expense, net | (36 | ) | (55 | ) | (59 | ) | (144 | ) | (148 | ) | |||||||||
| Income tax provision (benefit) | (27 | ) | 41 | (39 | ) | (38 | ) | (49 | ) | ||||||||||
| Equity income in investee | (7 | ) | (7 | ) | (3 | ) | (21 | ) | (10 | ) | |||||||||
| Stock-based compensation | 351 | 346 | 353 | 1,068 | 1,006 | ||||||||||||||
| Depreciation and amortization | 171 | 166 | 163 | 499 | 478 | ||||||||||||||
| Amortization of acquisition-related intangibles | 585 | 603 | 660 | 1,810 | 2,176 | ||||||||||||||
| Inventory loss at contract manufacturer | — | — | — | 65 | — | ||||||||||||||
| Acquisition-related and other costs | 56 | 46 | 39 | 141 | 201 | ||||||||||||||
| Adjusted EBITDA | $ | 1,887 | $ | 1,430 | $ | 1,439 | $ | 4,612 | $ | 3,920 | |||||||||
