| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
| Three Months Ended | |||
| (In millions, except percentages) | October 27, 2024 | ||
| GAAP provision for income taxes(a) | $ | 164 | |
| Income tax effect of share-based compensation | (7 | ) | |
| Income tax effects related to intra-entity intangible asset transfers | 33 | ||
| Resolutions of prior years’ income tax filings and other tax items | 47 | ||
| Income tax effect of non-GAAP adjustments | 1 | ||
| Non-GAAP provision for income taxes(b) | $ | 238 | |
| GAAP income before income taxes(c) | $ | 1,895 | |
| Certain items associated with acquisitions | 11 | ||
| Acquisition integration and deal costs | 3 | ||
| Impairment of long-lived assets | 3 | ||
| Realized loss (gain), dividends and impairments on strategic investments, net | (1 | ) | |
| Unrealized loss (gain) on strategic investments, net | 244 | ||
| Non-GAAP income before income taxes(d) | $ | 2,155 | |
| GAAP effective income tax rate(a/c) | 8.7 | % | |
| Non-GAAP effective income tax rate(b/d) | 11.0 | % | |
UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (In millions) | October 27,
2024 | October 29,
2023 | October 27,
2024 | October 29,
2023 | |||||||||||
| Cash provided by operating activities | $ | 2,575 | $ | 1,555 | $ | 8,677 | $ | 8,700 | |||||||
| Capital expenditures | (407 | ) | (309 | ) | (1,190 | ) | (1,106 | ) | |||||||
| Non-GAAP free cash flow | $ | 2,168 | $ | 1,246 | $ | 7,487 | $ | 7,594 | |||||||
