| 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) | January 28, 2024 | ||
| GAAP provision for income taxes (a) | $ | 284 | |
| Income tax effect of share-based compensation | 26 | ||
| Income tax effects related to intra-entity intangible asset transfers | (22 | ) | |
| Resolutions of prior years’ income tax filings and other tax items | (33 | ) | |
| Income tax effect of non-GAAP adjustments | (1 | ) | |
| Non-GAAP provision for income taxes (b) | $ | 254 | |
| GAAP income before income taxes (c) | $ | 2,303 | |
| Certain items associated with acquisitions | 11 | ||
| Acquisition integration and deal costs | 3 | ||
| Realized loss (gain), dividends and impairments on strategic investments, net | (1 | ) | |
| Unrealized loss (gain) on strategic investments, net | (280 | ) | |
| Non-GAAP income before income taxes (d) | $ | 2,036 | |
| GAAP effective income tax rate (a/c) | 12.3 | % | |
| Non-GAAP effective income tax rate (b/d) | 12.5 | % | |
| UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW | |||||||
| Three Months Ended | |||||||
| (In millions) | January 28,
2024 | January 29,
2023 | |||||
| Cash provided by operating activities | $ | 2,325 | $ | 2,270 | |||
| Capital expenditures | (229 | ) | (287 | ) | |||
| Non-GAAP free cash flow | $ | 2,096 | $ | 1,983 | |||
