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Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
 Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 31, 2019
  LAM RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
 
0-12933
 
94-2634797
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification Number)
4650 Cushing Parkway
Fremont, California 94538
(Address of principal executive offices including zip code)
(510) 572-0200
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨

 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
¨

 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
¨

 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
 
¨

 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, Par Value $0.001 Per Share
LRCX
The Nasdaq Stock Market
(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company     ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                      ¨


1



Table of Contents


Table of Contents
 
 
 
 
 
 
Item 2.02.
  
Results of Operations and Financial Condition
 
Item 9.01.
  
Financial Statements and Exhibits
 
SIGNATURES
 
EX-99.1
 
 


2



Table of Contents


 Item 2.02.
Results of Operations and Financial Condition
On July 31, 2019, Lam Research Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 30, 2019, the text of which is attached hereto as Exhibit 99.1.
The information in this item of this Current Report on Form 8-K, including Exhibit 99.1, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section. Furthermore, the information in this item of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
 Item 9.01.
Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated July 31, 2019 announcing financial results for the fiscal quarter ended June 30, 2019
 
 


3



Table of Contents



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:
July 31, 2019
 
LAM RESEARCH CORPORATION
 
 
 
(Registrant)
 
 
 
/s/ Douglas R. Bettinger
 
 
 
Douglas R. Bettinger
 
 
 
Executive Vice President, Chief Financial Officer
 
 
 
(Principal Financial Officer and Principal Accounting Officer)
 


4

Exhibit
Exhibit 99.1


FOR IMMEDIATE RELEASE        
Lam Research Corporation Contacts:
Tina Correia, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com
Lam Research Corporation Reports Financial Results for the Quarter Ended June 30, 2019
FREMONT, Calif., July 31, 2019 - Lam Research Corporation (the “Company,” “Lam,” “Lam Research”) today announced financial results for the quarter ended June 30, 2019 (the “June 2019 quarter”).
Highlights for the June 2019 quarter were as follows:
Revenue of $2.36 billion.
U.S. GAAP gross margin of 45.8%, U.S. GAAP operating income as a percentage of revenue of 26.1%, and U.S. GAAP diluted EPS of $3.51.
Non-GAAP gross margin of 45.9%, non-GAAP operating income as a percentage of revenue of 26.9%, and non-GAAP diluted EPS of $3.62.
Key Financial Data for the Quarters Ended
June 30, 2019 and March 31, 2019
(in thousands, except per-share data, percentages, and basis points) 
U.S. GAAP
 
  
June 2019
 
March 2019
 
Change Q/Q
Revenue
  
$
2,361,147

 
$
2,439,048

 
-3%
Gross margin as percentage of revenue
  
45.8
%
 
44.0
%
 
+ 180 bps
Operating income as percentage of revenue
  
26.1
%
 
23.2
%
 
+ 290 bps
Diluted EPS
  
$
3.51

 
$
3.47

 
+1%
 
Non-GAAP
 
  
June 2019
 
March 2019
 
Change Q/Q
Revenue
  
$
2,361,147

 
$
2,439,048

 
-3%
Gross margin as percentage of revenue
  
45.9
%
 
45.1
%
 
+ 80 bps
Operating income as percentage of revenue
  
26.9
%
 
25.1
%
 
+ 180 bps
Diluted EPS
  
$
3.62

 
$
3.70

 
-2%
U.S. GAAP Financial Results
For the June 2019 quarter, revenue was $2,361 million, gross margin was $1,081 million, or 45.8% of revenue, operating expenses were $464 million, operating income was 26.1% of revenue, and net income was $542 million, or $3.51 per diluted share on a U.S. GAAP basis. This compares to revenue of $2,439 million, gross margin of $1,074 million, or 44.0% of revenue, operating expenses of $509 million, operating income of 23.2% of revenue, and net income of $547 million, or $3.47 per diluted share, for the quarter ended March 31, 2019 (the “March 2019 quarter”). The June 2019 quarter includes 13 weeks; the March 2019 quarter includes 14 weeks.
Non-GAAP Financial Results
For the June 2019 quarter, non-GAAP gross margin was $1,085 million or 45.9% of revenue, non-GAAP operating expenses were $450 million, non-GAAP operating income was 26.9% of revenue, and non-GAAP net income was $559 million, or $3.62 per diluted share. This compares to non-GAAP gross margin of $1,100 million or 45.1% of revenue, non-GAAP operating expenses of $488 million, non-GAAP operating income of 25.1% of revenue, and non-GAAP net income of $584 million, or $3.70 per diluted share for the March 2019 quarter.

“Lam’s June quarter results reflect our strong track record of execution,” said Timothy Archer, Lam Research’s President and Chief Executive Officer. “We are making solid progress on our innovation roadmap, and with multiple technology inflections ahead of us, Lam is in an excellent position to win.”


1


Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and restricted cash and investments balances decreased to $5.7 billion at the end of the June 2019 quarter compared to $6.4 billion at the end of the March 2019 quarter. This decrease was primarily the result of $1.1 billion of share repurchases, including net share settlement on employee stock-based compensation, combined with $300 million of debt reductions and $165 million of dividends paid to shareholders, partially offset by $880 million of cash generated in operating activities.

Deferred revenue at the end of the June 2019 quarter increased to $449 million as compared to $441 million at the end of the March 2019 quarter. Deferred profit at the end of the June 2019 quarter increased slightly to $381 million as compared to $378 million at the end of the March 2019 quarter. Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $78 million as of June 30, 2019 and $80 million as of March 31, 2019.
Geographic Distribution
The geographic distribution of revenue during the June 2019 quarter is shown in the following table:
Region
Revenue
China
33
%
Korea
25
%
Taiwan
14
%
United States
11
%
Japan
9
%
Southeast Asia
5
%
Europe
3
%
Outlook
For the September 2019 quarter, Lam is providing the following guidance:
 
U.S. GAAP
 
Reconciling Items
 
Non-GAAP
Revenue
$2.15 Billion
+/-
 $150 Million
 
 
$2.15 Billion
+/-
 $150 Million
Gross margin as a percentage of revenue
44.9%
+/-
1%
 
$
2

Million
 
45.0%
+/-
1%
Operating income as a percentage of revenue
23.8%
+/-
1%
 
$
14

Million
 
24.5%
+/-
1%
Net income per diluted share
$2.91
+/-
$0.20
 
$
13

Million
 
$3.00
+/-
$0.20
Diluted share count
150 Million
 
 
150 Million
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release, and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other significant arrangements that may be completed after the date of this release. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:
Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $2 million.
Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $14 million.
Earnings per share - amortization related to intangible assets acquired through business combinations, $14 million; amortization of note discounts, $1 million; and associated tax benefit for non-GAAP items $(2) million; totaling $13 million.

2


Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results for both the June 2019 and March 2019 quarters exclude amortization related to intangible assets acquired through business combinations, restructuring charges, amortization of note discounts, income tax benefit of non-GAAP items, and income tax benefit on the conclusion of tax matters related to a prior business combination. Additionally, the June 2019 quarter non-GAAP results exclude income tax impacts associated with U.S. tax reform.
Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, net income, and net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company’s website at http://investor.lamresearch.com.
Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our focus on customer needs; our investments to extend differentiation in our products and services; the estimated future revenue from shipments to customers in Japan; the timing and amount of revenue and profit earned from any booked deferred revenue and profit; market trends and semiconductor demand; technology inflections; our technology leadership; our installed base growth; our positioning as market conditions change; technology demand trends; the legal and business factors that may affect our future tax rate; our engineering capabilities; our commitment to customer success; our continued ability to achieve and accelerate innovation and enhance device performance; our positioning relative to future technology inflections and our probability of winning; and our guidance for revenue, gross margin (both as a dollar value and a percentage of revenue), operating income (both as a dollar value and a percentage of revenue), net income or earnings per diluted share, and diluted share count. Some factors that may affect these forward-looking statements include: business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; and the actions of our customers and competitors may be inconsistent with our expectations, as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 24, 2018 and our quarterly reports on Form 10-Q for the fiscal quarters ended September 23, 2018, December 23, 2018 and March 31, 2019. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release.
About Lam Research
Lam Research Corporation. is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. As a trusted, collaborative partner to the world’s leading semiconductor companies, we combine superior systems engineering capability, technology leadership, and unwavering commitment to customer success to accelerate innovation through enhanced device performance. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX-F)
Consolidated Financial Tables Follow.
 ###

3


LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
 
 
Three Months Ended
 
Twelve Months Ended
 
June 30,
2019
 
March 31,
2019
 
June 24,
2018
 
June 30,
2019
 
June 24,
2018
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(1)
Revenue
$
2,361,147

 
$
2,439,048

 
$
3,125,928

 
$
9,653,559

 
$
11,076,998

Cost of goods sold
1,280,256

 
1,364,711

 
1,646,520

 
5,295,100

 
5,911,966

Gross margin
1,080,891

 
1,074,337

 
1,479,408

 
4,358,459

 
5,165,032

Gross margin as a percent of revenue
45.8
%
 
44.0
%
 
47.3
%
 
45.1
%
 
46.6
%
Research and development
295,578

 
318,514

 
327,713

 
1,191,320

 
1,189,514

Selling, general and administrative
168,228

 
190,306

 
196,500

 
702,407

 
762,219

Total operating expenses
463,806

 
508,820

 
524,213

 
1,893,727

 
1,951,733

Operating income
617,085

 
565,517

 
955,195

 
2,464,732

 
3,213,299

Operating income as a percent of revenue
26.1
%
 
23.2
%
 
30.6
%
 
25.5
%
 
29.0
%
Other (expense) income, net
(7,667
)
 
20,532

 
2,954

 
(18,161
)
 
(61,510
)
Income before income taxes
609,418

 
586,049

 
958,149

 
2,446,571

 
3,151,789

Income tax (expense) benefit
(67,593
)
 
(38,659
)
 
62,997

 
(255,141
)
 
(771,108
)
Net income
$
541,825

 
$
547,390

 
$
1,021,146

 
$
2,191,430

 
$
2,380,681

Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
3.66

 
$
3.62

 
$
6.35

 
$
14.37

 
$
14.73

Diluted
$
3.51

 
$
3.47

 
$
5.82

 
$
13.70

 
$
13.17

Number of shares used in per share calculations:
 
 
 
 
 
 
 
 
 
Basic
148,131

 
151,201

 
160,916

 
152,478

 
161,643

Diluted
154,474

 
157,849

 
175,432

 
159,915

 
180,782

Cash dividend declared per common share
$
1.10

 
$
1.10

 
$
1.10

 
$
4.40

 
$
2.55

(1) Derived from audited financial statements.

 

 

4


LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
 
June 30,
2019
 
March 31,
2019
 
June 24,
2018
 
(unaudited)
 
(unaudited)
 
(1)
ASSETS
 
 
 
 
 
Cash and cash equivalents
$
3,658,219

 
$
4,931,611

 
$
4,512,257

Investments
1,772,984

 
1,209,315

 
437,338

Accounts receivable, net
1,455,522

 
1,522,273

 
2,176,936

Inventories
1,540,140

 
1,622,242

 
1,876,162

Other current assets
133,544

 
156,800

 
147,218

Total current assets
8,560,409

 
9,442,241

 
9,149,911

Property and equipment, net
1,059,077

 
1,040,329

 
902,547

Restricted cash and investments
255,177

 
255,774

 
256,301

Goodwill and intangible assets
1,701,547

 
1,707,930

 
1,802,740

Other assets
425,123

 
448,988

 
367,979

Total assets
$
12,001,333

 
$
12,895,262

 
$
12,479,478

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Current portion of convertible debt and capital leases
$
667,131

 
$
964,107

 
$
610,030

Other current liabilities
1,704,519

 
1,841,521

 
2,540,278

Total current liabilities
2,371,650

 
2,805,628

 
3,150,308

Long-term debt and capital leases
3,822,768

 
3,801,514

 
1,806,562

Income taxes payable
892,790

 
863,155

 
851,936

Other long-term liabilities
190,821

 
83,986

 
90,629

Total liabilities
7,278,029

 
7,554,283

 
5,899,435

Temporary equity, convertible notes
49,439

 
49,783

 
78,192

Stockholders’ equity (2)
4,673,865

 
5,291,196

 
6,501,851

Total liabilities and stockholders’ equity
$
12,001,333

 
$
12,895,262

 
$
12,479,478

(1) Derived from audited financial statements.
 
 
 
 
 
(2) Common shares issued and outstanding were 144,433 as of June 30, 2019, 149,886 as of March 31, 2019 and 156,892 as of June 24, 2018.
     

 

5


LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Three Months Ended
 
Twelve Months Ended
 
June 30,
2019
 
March 31,
2019
 
June 24,
2018
 
June 30,
2019
 
June 24,
2018
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(1)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net income
$
541,825

 
$
547,390

 
$
1,021,146

 
$
2,191,430

 
$
2,380,681

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
65,408

 
82,274

 
85,119

 
309,281

 
326,395

Deferred income taxes
70,125

 
(12,401
)
 
212,260

 
(4,980
)
 
3,046

Equity-based compensation expense
44,845

 
53,240

 
47,214

 
187,234

 
172,216

Impairment of investment

 

 

 

 
42,456

Amortization of note discounts and issuance costs
2,206

 
2,861

 
959

 
7,343

 
14,428

Other, net
(5,173
)
 
(1,494
)
 
10,391

 
(5,819
)
 
33,718

Changes in operating assets and liabilities
161,251

 
260,951

 
(658,731
)
 
491,524

 
(317,193
)
Net cash provided by operating activities
880,487

 
932,821

 
718,358

 
3,176,013

 
2,655,747

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Capital expenditures and intangible assets
(65,948
)
 
(75,522
)
 
(79,655
)
 
(303,491
)
 
(273,469
)
Business acquisitions, net of cash acquired

 

 

 

 
(115,697
)
Net (purchase) sale of available-for-sale securities
(555,468
)
 
(931,380
)
 
1,341,475

 
(1,326,208
)
 
3,152,886

Other, net
(2,067
)
 
(1,269
)
 
(826
)
 
(7,355
)
 
(15,184
)
Net cash (used for) provided by investing activities
(623,483
)
 
(1,008,171
)
 
1,260,994

 
(1,637,054
)
 
2,748,536

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Principal payments on long-term debt and capital lease obligations and payments for debt issuance costs
(1,157
)
 
(30,225
)
 
(178,279
)
 
(117,653
)
 
(755,694
)
Proceeds from issuance of long-term debt, net of issuance costs

 
2,476,720

 

 
2,476,720

 

Net (repayment) proceeds from commercial paper
(300,000
)
 
297,850

 
(638,367
)
 
(361,754
)
 
359,604

Proceeds from borrowings on revolving credit facility

 

 

 

 
750,000

Repayments of borrowings on revolving credit facility

 

 

 

 
(750,000
)
Treasury stock purchases
(1,108,560
)
 
(934,637
)
 
(1,306,309
)
 
(3,780,611
)
 
(2,653,249
)
Dividends paid
(164,874
)
 
(171,196
)
 
(82,005
)
 
(678,348
)
 
(307,609
)
Re-issuance of treasury stock related to employee stock purchase plan
45,041

 

 
41,567

 
77,961

 
75,624

Proceeds from issuance of common stock
1,694

 
5,010

 
2,626

 
6,813

 
9,258

Other, net

 

 
(2
)
 
(13,208
)
 
9

Net cash (used for) provided by financing activities
(1,527,856
)
 
1,643,522

 
(2,160,769
)
 
(2,390,080
)
 
(3,272,057
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(3,137
)
 
4,128

 
(5,607
)
 
(4,041
)
 
2,593

Net (decrease) increase in cash, cash equivalents, and restricted cash
(1,273,989
)
 
1,572,300

 
(187,024
)
 
(855,162
)
 
2,134,819

Cash, cash equivalents, and restricted cash at beginning of period
5,187,385

 
3,615,085

 
4,955,582

 
4,768,558

 
2,633,739

Cash, cash equivalents, and restricted cash at end of period
$
3,913,396

 
$
5,187,385

 
$
4,768,558

 
$
3,913,396

 
$
4,768,558

(1) Derived from audited financial statements.
 
 
 
 
 
 
 
 
 
    

6


Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
 
Three Months Ended
 
June 30,
2019
 
March 31,
2019
Revenue
$
2,361,147

 
$
2,439,048

Gross margin
$
1,084,881

 
$
1,099,550

Gross margin as percentage of revenue
45.9
%
 
45.1
%
Operating expenses
$
450,161

 
$
488,389

Operating income
$
634,720

 
$
611,161

Operating income as a percentage of revenue
26.9
%
 
25.1
%
Net income
$
558,832

 
$
584,350

Net income per diluted share
$
3.62

 
$
3.70

Shares used in per share calculation - diluted
154,474

 
157,849

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited) 
 
Three Months Ended
 
June 30,
2019
 
March 31,
2019
U.S. GAAP net income
$
541,825

 
$
547,390

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold
3,389

 
22,342

Restructuring charges - cost of goods sold
601

 
2,871

Restructuring charges - research and development
206

 
4,698

Amortization related to intangible assets acquired through certain business combinations -selling, general and administrative
12,357

 
12,446

Restructuring charges - selling, general and administrative
1,082

 
3,287

Amortization of note discounts - other expense, net
1,195

 
956

Net income tax benefit on non-GAAP items
(3,104
)
 
(6,718
)
Income tax benefit on conclusion of certain tax matters
(172
)
 
(2,922
)
Income tax expense associated with U.S. tax reform
1,453

 

Non-GAAP net income
$
558,832

 
$
584,350

Non-GAAP net income per diluted share
$
3.62

 
$
3.70

U.S. GAAP net income per diluted share
$
3.51

 
$
3.47

U.S. GAAP number of shares used for per diluted share calculation
154,474

 
157,849



 




7


Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income
(in thousands, except percentages)
(unaudited) 
 
Three Months Ended
 
June 30,
2019
 
March 31,
2019
U.S. GAAP gross margin
$
1,080,891

 
$
1,074,337

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations
3,389

 
22,342

Restructuring charges
601

 
2,871

Non-GAAP gross margin
$
1,084,881

 
$
1,099,550

U.S. GAAP gross margin as a percentage of revenue
45.8
%
 
44.0
%
Non-GAAP gross margin as a percentage of revenue
45.9
%
 
45.1
%
U.S. GAAP operating expenses
$
463,806

 
$
508,820

Pre-tax non-GAAP items:
 
 
 
Amortization related to intangible assets acquired through certain business combinations
(12,357
)
 
(12,446
)
Restructuring charges
(1,288
)
 
(7,985
)
Non-GAAP operating expenses
$
450,161

 
$
488,389

U.S. GAAP operating income
$
617,085

 
$
565,517

Non-GAAP operating income
$
634,720

 
$
611,161

U.S. GAAP operating income as percent of revenue
26.1
%
 
23.2
%
Non-GAAP operating income as a percent of revenue
26.9
%
 
25.1
%
 


8