Reconciliation of non-GAAP 昀椀nancial measures (continued) In millions, except per share data FY’23 Net income (GAAP) $ 438.9 Stock-based compensation 212.8 In millions, except percentagesQ1’21Q2’21Q3’21Q4’21Q1’22Q2’22Q3’22Q4’22Q1’23Q2’23Q3’23Q4’23Acquisition related expenses and amortization22.9 Gross pro昀椀t (GAAP) $122.9 $127.8 $140.4 $163.3 $177.0 $219.0 $267.9 $310.7 $177.0 $219.0 $267.9 $310.7 Restructuring and asset impairment charges 15.7 Non-cash interest expense 8.4 Stock-based compensation1.01.12.92.42.53.13.24.32.53.13.24.3Non-GAAP income tax adjustment (85.5) Acquisition related amortization - - - 0.21.31.51.42.11.31.51.42.1Net income (non-GAAP) $ 613.2 Gross pro昀椀t (Non-GAAP) $123.9 $128.9 $143.3 $165.9 $180.8 $223.6 $272.5 $317.1 $180.8 $223.6 $272.5 $317.1 Net income per share, diluted (GAAP) $ 3.08 Stock-based compensation 1.57 Gross margin (GAAP)40.7%40.4%39.9%39.6%40.1%41.3%42.2%42.9%40.1%41.3%42.2%42.9%Acquisition related expenses and amortization 0.16 Stock-based compensation0.4%0.4%0.9%0.6%0.6%0.6%0.5%0.6%0.6%0.6%0.5%0.6%Restructuring and asset impairment charges 0.11 Acquisition related amortization-%-%-%-%0.3%0.3%0.2%0.3%0.3%0.3%0.2%0.3%Non-cash interest expense 0.06 Non-GAAP income tax adjustment (0.57) Gross margin (Non-GAAP)41.1%40.8%40.8%40.2%41.0%42.2%42.9%43.8%41.0%42.2%42.9%43.8% Net income (loss) per share, diluted (Non-GAAP) (1) $ 4.41 Operating expenses (GAAP) $61.6 $68.4 $103.0 $105.6 $115.2 $125.0 $132.5 $153.7 $115.2 $125.0 $132.5 $153.7 Shares used in diluted per share calculation GAAP142.3 Shares used in diluted per share calculation Non-GAAP 139.2 Stock-based compensation(13.9)(14.3)(44.1)(34.8)(45.3)(49.9)(49.1)(59.4)(45.3)(49.9)(49.1)(59.4) Acquisition related expenses and amortization(4.0)(2.5)(1.6)(2.7)(3.6)(3.9)(4.2)(4.8)(3.6)(3.9)(4.2)(4.8)Income-based government grants (GAAP)$ 53.5 Restructuring and asset impairment charges------(0.6)(1.8)--(0.6)(1.8)Incremental cost for manufacturing in U.S. (11.6) Operating expenses (Non-GAAP) $43.7 $51.6 $57.3 $68.1 $66.3 $71.2 $78.6 $87.7 $66.3 $71.2 $78.6 $87.7 Net IRA bene昀椀t (Non-GAAP)$ 41.9 % of Revenue (Non-GAAP)14.5%16.4%16.3%16.5%15.0%13.4%12.4%12.1%15.0%13.4%12.4%12.1% Net cash provided by operating activities (GAAP) $ 696.8 Purchases of property and equipment (110.4) Income (loss) from operations (GAAP) $61.4 $59.4 $37.4 $57.7 $61.8 $94.0 $135.4 $157.0 $61.8 $94.0 $135.4 $157.0 Free cash 昀氀ow (Non-GAAP)$ 586.4 Stock-based compensation14.815.346.937.147.853.152.363.647.853.152.363.6 Acquisition related expenses and amortization4.02.51.62.94.95.35.674.95.35.67 Restructuring and asset impairment charges------0.61.8--0.61.8 Income from operations (Non-GAAP) $80.2 $77.2 $85.9 $97.7 $114.5 $152.4 $193.9 $229.4 $114.5 $152.4 $193.9 $229.4 % of Revenue (Non-GAAP)26.6%24.4%24.4%23.7%26.0%28.7%30.6%31.7%26.0%28.7%30.6%31.7% (1) Calculation of non-GAAP diluted net income per share for the year ended December 31, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million in each period from non-GAAP net income. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT 2023 99