Q2 FY2021 Earnings Call
GAAP to non-GAAP Reconciliations
May 20, 2021
APPLIED MATERIALS EXTERNAL
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended | Six Months Ended | |||
May 2, | April 26, | May 2, | April 26, | |
2021 | 2020 | 2021 | 2020 |
(In millions, except percentages and per share amounts)
Non-GAAP Adjusted Gross Profit | |
Reported gross profit - GAAP basis | $ |
Certain items associated with acquisitions1 | |
Certain incremental expenses related to COVID-192 | |
Other charges | |
Non-GAAP adjusted gross profit | $ |
Non-GAAP adjusted gross margin | |
Non-GAAP Adjusted Operating Income | |
Reported operating income - GAAP basis | $ |
Certain items associated with acquisitions1 | |
Acquisition integration and deal costs | |
Certain incremental expenses related to COVID-192 | |
Severance and related charges3 | |
Deal termination fee | |
Other charges | |
Non-GAAP adjusted operating income | $ |
Non-GAAP adjusted operating margin | |
Non-GAAP Adjusted Net Income | |
Reported net income - GAAP basis | $ |
Certain items associated with acquisitions1 | |
Acquisition integration and deal costs | |
Certain incremental expenses related to COVID-192 | |
Severance and related charges3 | |
Deal termination fee | |
Realized loss (gain) on strategic investments, net | |
Unrealized loss (gain) on strategic investments, net | |
Other charges | |
Income tax effect of share-based compensation4 | |
Income tax effects related to intra-entity intangible asset transfers | |
Resolution of prior years' income tax filings and other tax items | |
Income tax effect of non-GAAP adjustments5 | |
Non-GAAP adjusted net income | $ |
2,653 | $ | 1,749 | $ |
7 | 8 | ||
- | 8 | ||
2 | - | ||
2,662 | $ | 1,765 | $ |
47.7% | 44.6% | ||
1,579 | $ | 932 | $ |
12 | 13 | ||
11 | 21 | ||
- | 10 | ||
6 | - | ||
154 | - | ||
6 | - | ||
1,768 | $ | 976 | $ |
31.7% | 24.7% | ||
1,330 | $ | 755 | $ |
12 | 13 | ||
12 | 21 | ||
- | 10 | ||
6 | - | ||
154 | - | ||
6 | 5 | ||
(26) | 2 | ||
6 | - | ||
6 | 8 | ||
17 | 16 | ||
(10) | (3) | ||
(4) | (10) | ||
1,509 | $ | 817 | $ |
5,002 | $ | 3,607 |
15 | 17 | |
12 | 8 | |
2 | - | |
5,031 | $ | 3,632 |
46.8% | 44.7% | |
2,862 | $ | 1,974 |
25 | 26 | |
35 | 34 | |
24 | 10 | |
158 | - | |
154 | - | |
6 | - | |
3,264 | $ | 2,044 |
30.4% | 25.2% | |
2,460 | $ | 1,647 |
25 | 26 | |
36 | 34 | |
24 | 10 | |
158 | - | |
154 | - | |
4 | 7 | |
(32) | 4 | |
6 | - |
- (25)
37 | 37 |
(13) | (4) |
- (15)
2,791 $ 1,721
- These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets.
- Temporary incremental employee compensation during the COVID-19 pandemic.
- The severance and related charges primarily related to a one-time voluntary retirement program offered to certain eligible employees.
- GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis.
- 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 | Six Months Ended | |||
May 2, | April 26, | May 2, | April 26, | |
2021 | 2020 | 2021 | 2020 |
(In millions, except percentages and per share amounts)
Non-GAAP Adjusted Earnings Per Diluted Share | |
Reported earnings per diluted share - GAAP basis | $ |
Certain items associated with acquisitions | |
Acquisition integration and deal costs | |
Certain incremental expenses related to COVID-19 | |
Severance and related charges | |
Deal termination fee | |
Realized loss (gain) on strategic investments, net | |
Unrealized loss (gain) on strategic investments, net | |
Income tax effect of share-based compensation | |
Income tax effects related to amortization of intra-entity intangible | |
asset transfers | |
Resolution of prior year's income tax filings and other tax items | |
Non-GAAP adjusted earnings per diluted share | $ |
Weighted average number of diluted shares |
- $
-
(0.03)
0.01
0.02
(0.01)
1.63 $
927
-
$
-
-
-
0.02
(0.01)
0.89 $
923
2.66 $ 1.78
0.020.02
0.030.04
0.020.01
0.13-
0.17-
- 0.01
(0.02)-
(0.02)(0.03)
0.040.04
(0.01) | (0.01) | |
3.02 | $ | 1.86 |
926 | 925 |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED
SEMICONDUCTOR SYSTEMS OPERATING RESULTS
Three Months Ended | Six Months Ended | ||||||||||
May 2, | April 26, | May 2, | April 26, | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
(In millions, except percentages) | |||||||||||
Reported operating income (GAAP basis) | $ | 1,542 | $ | 782 | $ | 2,803 | $ | 1,697 | |||
Certain items associated with acquisitions1 | 10 | 10 | 20 | 20 | |||||||
Acquisition integration and deal costs | - | - | (2) | - | |||||||
Certain incremental expenses related to COVID-192 | - | 6 | 12 | 6 | |||||||
Other charges | 3 | - | 3 | - | |||||||
Non-GAAP adjusted operating income | $ | 1,555 | $ | 798 | $ | 2,836 | $ | 1,723 | |||
Non-GAAP adjusted operating margin (% of net sales) | 39.1% | 31.1% | 37.7% | 32.0% | ||||||||
APPLIED MATERIALS, INC. | ||||||||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED | ||||||||||||
AGS OPERATING RESULTS | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
May 2, | April 26, | May 2, | April 26, | |||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
(In millions, except percentages) | ||||||||||||
Reported operating income (GAAP basis) | $ | 358 | $ | 256 | $ | 690 | $ | 534 | ||||
Certain incremental expenses related to COVID-192 | - | 4 | 8 | 4 | ||||||||
Other charges | 1 | - | 1 | - | ||||||||
Non-GAAP adjusted operating income | $ | 359 | $ | 260 | $ | 699 | $ | 538 | ||||
Non-GAAP adjusted operating margin (% of net sales) | ||||||||||||
29.8% | 25.5% | 29.6% | 26.7% | |||||||||
APPLIED MATERIALS, INC. | ||||||||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED | ||||||||||||
DISPLAY AND ADJACENT MARKETS OPERATING RESULTS | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
May 2, | April 26, | May 2, | April 26, | |||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
(In millions, except percentages) | ||||||||||||
Reported operating income (GAAP basis) | $ | 65 | $ | 75 | $ | 130 | $ | 113 | ||||
Certain items associated with acquisitions1 | 1 | 3 | 2 | 6 | ||||||||
Certain incremental expenses related to COVID-192 | - | - | 1 | - | ||||||||
Severance and related charges3 | - | - | 8 | - | ||||||||
Non-GAAP adjusted operating income | $ | 66 | $ | 78 | $ | 141 | $ | 119 | ||||
Non-GAAP adjusted operating margin (% of net sales) | 17.6% | 21.4% | 17.9% | 17.1% |
1 - These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2 - Temporary incremental employee compensation during the COVID-19 pandemic.
3 - The severance and related charges related to workforce reduction actions globally across the Display and Adjacent Markets business.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED
OPERATING EXPENSES
Three Months Ended | Six Months Ended | ||||||||||
May 2, | April 26, | May 2, | April 26, | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
(In millions) | |||||||||||
Operating expenses (GAAP basis) | $ | 1,074 | $ | 817 | $ | 2,140 | $ | 1,633 | |||
Certain items associated with acquisitions | (5) | (5) | (10) | (9) | |||||||
Acquisition integration and deal costs | (11) | (21) | (35) | (34) | |||||||
Certain incremental expenses related to COVID-19 | - | (2) | (12) | (2) | |||||||
Severance and related charges | (6) | - | (158) | - | |||||||
Deal termination fee | (154) | - | (154) | - | |||||||
Other charges | (4) | - | (4) | - | |||||||
Non-GAAP adjusted operating expenses | $ | 894 | $ | 789 | $ | 1,767 | $ | 1,588 | |||
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Applied Materials Inc. published this content on 20 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2021 20:12:06 UTC.