| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
| 2 | GAAP basis tax benefit related to share-based compensation is being recognized ratably over the fiscal year on a non-GAAP basis. |
| 3 | Charges to income tax provision related to a one-time transition tax and a decrease in U.S. deferred tax assets as a result of the recent U.S. tax legislation. |
| 4 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (In millions, except per share amounts) | July 28,
2019 | July 29,
2018 | July 28,
2019 | July 29,
2018 | |||||||||||
| Non-GAAP Adjusted Earnings Per Diluted Share | |||||||||||||||
| Reported earnings per diluted share - GAAP basis | $ | 0.61 | $ | 1.01 | $ | 2.11 | $ | 2.20 | |||||||
| Certain items associated with acquisitions | 0.01 | 0.05 | 0.04 | 0.13 | |||||||||||
| Acquisition integration and deal costs | 0.01 | — | 0.01 | — | |||||||||||
| Impairment (gain on sale) of strategic investments, net | — | (0.01 | ) | — | (0.01 | ) | |||||||||
| Loss (gain) on strategic investments, net | (0.01 | ) | — | (0.03 | ) | — | |||||||||
| Income tax effect of share-based compensation | — | 0.01 | — | (0.01 | ) | ||||||||||
| Income tax effect of changes in applicable U.S. tax laws | — | 0.01 | (0.03 | ) | 1.05 | ||||||||||
| Income tax effects related to amortization of intra-entity intangible asset transfers | 0.12 | — | 0.06 | — | |||||||||||
| Resolution of prior years’ income tax filings and other tax items | — | (0.03 | ) | 0.08 | (0.03 | ) | |||||||||
| Non-GAAP adjusted earnings per diluted share | $ | 0.74 | $ | 1.04 | $ | 2.24 | $ | 3.33 | |||||||
| Weighted average number of diluted shares | 937 | 1,005 | 950 | 1,039 | |||||||||||
