Reconciliation of Non-GAAP Financial Measure

During our October 19 conference call to discuss our third-quarter 2009 financial results, we provided information regarding our Wireless segment’s sequential and year-on-year growth that excluded that segment’s baseband product line. The table below provides a reconciliation of that non-GAAP information to the GAAP-compliant results of the entire segment. Because we are winding down our baseband product line over the next few years, we believe the non-GAAP information provides investors important additional insight into our Wireless segment’s performance.

Non-GAAP Reconciliation
(Millions of dollars)
    For the three
months ended
Sept. 30, 2009
    For the three
months ended
June 30, 2009
    For the three
months ended
Sept. 30, 2008
  % change
Net revenue as reported $ 675     $ 601     12%     $ 915     -26%  
Baseband revenue   450       410           673      
Net revenue without baseband $ 225     $ 191     18%     $ 242     -7%