NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| April 4, 2021 | December 31, 2020 | March 29, 2020 | |||||||||
| Revenue | $ | 2,567 | $ | 2,507 | $ | 2,021 | |||||
| GAAP Gross Profit | $ | 1,355 | $ | 1,288 | $ | 997 | |||||
| PPA Effects | (18 | ) | (21 | ) | (36 | ) | |||||
| Restructuring | — | — | (3 | ) | |||||||
| Stock Based Compensation | (12 | ) | (12 | ) | (11 | ) | |||||
| Other incidentals | (7 | ) | (5 | ) | — | ||||||
| Non-GAAP Gross Profit | $ | 1,392 | $ | 1,326 | $ | 1,047 | |||||
| GAAP Gross margin | 52.8 | % | 51.4 | % | 49.3 | % | |||||
| Non-GAAP Gross margin | 54.2 | % | 52.9 | % | 51.8 | % | |||||
| GAAP Research and development | $ | (461 | ) | $ | (460 | ) | $ | (425 | ) | ||
| Restructuring | — | (22 | ) | (4 | ) | ||||||
| Stock based compensation | (40 | ) | (41 | ) | (40 | ) | |||||
| Merger-related costs | — | — | (1 | ) | |||||||
| Other incidentals | (1 | ) | (1 | ) | — | ||||||
| Non-GAAP Research and development | $ | (420 | ) | $ | (396 | ) | $ | (380 | ) | ||
| GAAP Selling, general and administrative | $ | (222 | ) | $ | (221 | ) | $ | (233 | ) | ||
| PPA effects | — | (2 | ) | (2 | ) | ||||||
| Restructuring | — | (16 | ) | (4 | ) | ||||||
| Stock based compensation | (39 | ) | (36 | ) | (56 | ) | |||||
| Merger-related costs | — | — | (3 | ) | |||||||
| Other incidentals | (3 | ) | — | (3 | ) | ||||||
| Non-GAAP Selling, general and administrative | $ | (180 | ) | $ | (167 | ) | $ | (165 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (180 | ) | $ | (148 | ) | $ | (381 | ) | ||
| PPA effects | (180 | ) | (148 | ) | (381 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | — | $ | 4 | $ | 110 | |||||
| Other incidentals | — | 3 | 110 | ||||||||
| Non-GAAP Other income (expense) | $ | — | $ | 1 | $ | — | |||||
| GAAP Operating income (loss) | $ | 492 | $ | 463 | $ | 68 | |||||
| PPA effects | (198 | ) | (171 | ) | (419 | ) | |||||
| Restructuring | — | (38 | ) | (11 | ) | ||||||
| Stock based compensation | (91 | ) | (89 | ) | (107 | ) | |||||
| Merger-related costs | — | — | (4 | ) | |||||||
| Other incidentals | (11 | ) | (3 | ) | 107 | ||||||
| Non-GAAP Operating income (loss) | $ | 792 | $ | 764 | $ | 502 | |||||
| GAAP Operating margin | 19.2 | % | 18.5 | % | 3.4 | % | |||||
| Non-GAAP Operating margin | 30.9 | % | 30.5 | % | 24.8 | % | |||||
| GAAP Financial income (expense) | $ | (87 | ) | $ | (137 | ) | $ | (78 | ) | ||
| Foreign exchange gain (loss) | — | (6 | ) | (1 | ) | ||||||
| Gain (loss) on extinguishment of long-term debt | — | (60 | ) | — | |||||||
| Other financial income (expense) | — | 19 | (2 | ) | |||||||
| Non-GAAP Financial income (expense) | $ | (87 | ) | $ | (90 | ) | $ | (75 | ) | ||
