NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| April 2, 2023 | December 31, 2022 | April 3, 2022 | |||||||||
| Revenue | $ | 3,121 | $ | 3,312 | $ | 3,136 | |||||
| GAAP Gross Profit | $ | 1,770 | $ | 1,891 | $ | 1,777 | |||||
| PPA Effects | (13 | ) | (15 | ) | (14 | ) | |||||
| Restructuring | 2 | — | — | ||||||||
| Share-based compensation | (13 | ) | (12 | ) | (11 | ) | |||||
| Other incidentals | (22 | ) | (4 | ) | (5 | ) | |||||
| Non-GAAP Gross Profit | $ | 1,816 | $ | 1,922 | $ | 1,807 | |||||
| GAAP Gross margin | 56.7 | % | 57.1 | % | 56.7 | % | |||||
| Non-GAAP Gross margin | 58.2 | % | 58.0 | % | 57.6 | % | |||||
| GAAP Research and development | $ | (577 | ) | $ | (540 | ) | $ | (518 | ) | ||
| Restructuring | (14 | ) | — | 1 | |||||||
| Share-based compensation | (52 | ) | (49 | ) | (44 | ) | |||||
| Other incidentals | (1 | ) | (1 | ) | (1 | ) | |||||
| Non-GAAP Research and development | $ | (510 | ) | $ | (490 | ) | $ | (474 | ) | ||
| GAAP Selling, general and administrative | $ | (280 | ) | $ | (261 | ) | $ | (251 | ) | ||
| PPA effects | (1 | ) | (1 | ) | (1 | ) | |||||
| Restructuring | (6 | ) | 2 | — | |||||||
| Share-based compensation | (34 | ) | (36 | ) | (34 | ) | |||||
| Other incidentals | (21 | ) | (3 | ) | (2 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (218 | ) | $ | (223 | ) | $ | (214 | ) | ||
| GAAP amortization of acquisition-related intangible assets | $ | (85 | ) | $ | (109 | ) | $ | (135 | ) | ||
| PPA effects | (85 | ) | (109 | ) | (135 | ) | |||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | — | $ | — | $ | — | |||||
| GAAP Other income (expense) | $ | (3 | ) | $ | (1 | ) | $ | — | |||
| Other incidentals | — | — | — | ||||||||
| Non-GAAP Other income (expense) | $ | (3 | ) | $ | (1 | ) | $ | — | |||
| GAAP Operating income (loss) | $ | 825 | $ | 980 | $ | 873 | |||||
| PPA effects | (99 | ) | (125 | ) | (150 | ) | |||||
| Restructuring | (18 | ) | 2 | 1 | |||||||
| Share-based compensation | (99 | ) | (97 | ) | (89 | ) | |||||
| Other incidentals | (44 | ) | (8 | ) | (8 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,085 | $ | 1,208 | $ | 1,119 | |||||
| GAAP Operating margin | 26.4 | % | 29.6 | % | 27.8 | % | |||||
| Non-GAAP Operating margin | 34.8 | % | 36.5 | % | 35.7 | % | |||||
| GAAP Financial income (expense) | $ | (82 | ) | $ | (103 | ) | $ | (105 | ) | ||
| Foreign exchange gain (loss) | (3 | ) | (8 | ) | (1 | ) | |||||
| Other financial income (expense) | (3 | ) | — | (1 | ) | ||||||
| Non-GAAP Financial income (expense) | $ | (76 | ) | $ | (95 | ) | $ | (103 | ) | ||
| GAAP Income tax benefit (provision) | $ | (118 | ) | ||||||||
| Income tax effect | 49 | ||||||||||
| Non-GAAP Income tax benefit (provision) | $ | (167 | ) | ||||||||
| GAAP Results relating to equity-accounted investees | $ | (2 | ) | ||||||||
| Results relating to equity-accounted investees | (2 | ) | |||||||||
| Non-GAAP Results relating to equity-accounted investees | $ | — | |||||||||
| GAAP Net income (loss) | $ | 623 | |||||||||
| Less: Net income (loss) attributable to non-controlling interests | 8 | ||||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 615 | |||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 615 | |||||||||
| PPA Effects | (99 | ) | |||||||||
| Restructuring | (18 | ) | |||||||||
| Share-based compensation | (99 | ) | |||||||||
| Other incidentals | (44 | ) | |||||||||
| Other adjustments | 41 | ||||||||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 834 | |||||||||
| GAAP Diluted earnings per share | $ | 2.35 | |||||||||
| Non-GAAP Diluted earnings per share | $ | 3.19 | |||||||||
