| 2023 Guidance | ||||
| Prior | Updated | |||
| GAAP R&D | $4.200–$4.435 billion | $4.225–$4.465 billion | ||
| Non-GAAP R&D(a) | $3.725–$3.925 billion | Unchanged | ||
| GAAP SG&A | $2.460–$2.650 billion | $2.490–$2.680 billion | ||
| Non-GAAP SG&A(a) | $2.130–$2.280 billion | Unchanged | ||
| GAAP gross margin on net product sales(d) | 88%–90% | 87%–89% | ||
| Non-GAAP gross margin on net product sales(a)(d) | 90%–92% | 89%–91% | ||
| COCM(e)* | $720–$800 million | $820–$880 million | ||
| Capital expenditures* | $825–$950 million | $800–$900 million | ||
| GAAP effective tax rate | 10%–12% | 8%–10% | ||
| Non-GAAP effective tax rate(a) | 11%–13% | 10%–12% | ||
| * GAAP and non-GAAP amounts are equivalent as no non-GAAP adjustments have been or are expected to be recorded. | ||||
A reconciliation of full year 2023 GAAP to non-GAAP financial guidance is included below:
| Projected Range | ||||||
| ($ in millions) | Low | High | ||||
| GAAP R&D | $ | 4,225 | $ | 4,465 | ||
| Stock-based compensation expense | 490 | 520 | ||||
| Acquisition-related integration costs | 10 | 20 | ||||
| Non-GAAP R&D | $ | 3,725 | $ | 3,925 | ||
| GAAP SG&A | $ | 2,490 | $ | 2,680 | ||
| Stock-based compensation expense | 310 | 330 | ||||
| Acquisition-related integration costs | 50 | 70 | ||||
| Non-GAAP SG&A | $ | 2,130 | $ | 2,280 | ||
| GAAP gross margin on net product sales | 87 | % | 89 | % | ||
| Stock-based compensation expense | 1 | % | 1 | % | ||
| Intangible asset amortization expense | 1 | % | 1 | % | ||
| Non-GAAP gross margin on net product sales | 89 | % | 91 | % | ||
| GAAP ETR | 8 | % | 10 | % | ||
| Income tax effect of GAAP to non-GAAP reconciling items | 2 | % | 2 | % | ||
| Non-GAAP ETR | 10 | % | 12 | % | ||
