| NXP Semiconductors | |||||||||||||||||||||||
| Table 5: Financial Reconciliation of GAAP to non-GAAP Results (unaudited) | |||||||||||||||||||||||
| ($ in millions except share data) | Three Months Ended | Full Year | |||||||||||||||||||||
|
Dec. 31,
2015 |
Oct. 4,
2015 |
Dec. 31,
2014 |
2015 |
2014 | |||||||||||||||||||
| Revenue | $ | 1,606 | $ | 1,522 | $ | 1,537 | $ | 6,101 | $ | 5,647 | |||||||||||||
| GAAP Gross profit | $ | 619 | $ | 740 | $ | 704 | $ | 2,787 | $ | 2,640 | |||||||||||||
| PPA effects 1) | (167 | ) | (3 | ) | (3 | ) | (178 | ) | (12 | ) | |||||||||||||
| Restructuring 2) | (13 | ) | (4 | ) | (5 | ) | (18 | ) | (43 | ) | |||||||||||||
| Stock Based Compensation 2) | (7 | ) | (3 | ) | (3 | ) | (15 | ) | (10 | ) | |||||||||||||
| Other incidentals | - | 2 | (1 | ) | (1 | ) | (8 | ) | |||||||||||||||
| Non-GAAP Gross profit | $ | 806 | $ | 748 | $ | 716 | $ | 2,999 | $ | 2,713 | |||||||||||||
| GAAP Gross margin | 38.5 | % | 48.6 | % | 45.8 | % | 45.7 | % | 46.8 | % | |||||||||||||
| Non-GAAP Gross margin | 50.2 | % | 49.1 | % | 46.6 | % | 49.2 | % | 48.0 | % | |||||||||||||
| GAAP Research and development | $ | (318 | ) | $ | (178 | ) | $ | (198 | ) | $ | (890 | ) | $ | (763 | ) | ||||||||
| Restructuring 2) | (79 | ) | 1 | (4 | ) | (91 | ) | (9 | ) | ||||||||||||||
| Stock based compensation 2) | (21 | ) | (7 | ) | (7 | ) | (45 | ) | (20 | ) | |||||||||||||
| Other incidentals | 1 | - | - | 1 | (1 | ) | |||||||||||||||||
| Non-GAAP Research and development | $ | (219 | ) | $ | (172 | ) | $ | (187 | ) | $ | (755 | ) | $ | (733 | ) | ||||||||
| GAAP Selling, general and administrative | $ | (413 | ) | $ | (162 | ) | $ | (167 | ) | $ | (922 | ) | $ | (686 | ) | ||||||||
| Restructuring 2) | (147 | ) | (1 | ) | (3 | ) | (155 | ) | (5 | ) | |||||||||||||
| Stock based compensation 2) | (83 | ) | (24 | ) | (24 | ) | (156 | ) | (103 | ) | |||||||||||||
| Merger-related costs | (27 | ) | (3 | ) | - | (42 | ) | - | |||||||||||||||
| Other incidentals | (1 | ) | (3 | ) | 3 | (4 | ) | (7 | ) | ||||||||||||||
| Non-GAAP Selling, general and administrative | $ | (155 | ) | $ | (131 | ) | $ | (143 | ) | $ | (565 | ) | $ | (571 | ) | ||||||||
| GAAP amortization of acquisition-related intangible assets | $ | (133 | ) | $ | (29 | ) | $ | (31 | ) | $ | (223 | ) | $ | (152 | ) | ||||||||
| PPA effects | (133 | ) | (29 | ) | (31 | ) | (223 | ) | (152 | ) | |||||||||||||
| Non-GAAP amortization of acquisition-related intangible assets | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
| GAAP Other income (expense) | $ | 1,258 | $ | 4 | $ | 2 | $ | 1,263 | $ | 10 | |||||||||||||
| PPA effects | - | - | - | - | (3 | ) | |||||||||||||||||
| Other incidentals 3) | 1,257 | - | (1 | ) | 1,257 | 8 | |||||||||||||||||
| Non-GAAP Other income (expense) | $ | 1 | $ | 4 | $ | 3 | $ | 6 | $ | 5 | |||||||||||||
| GAAP Operating income (loss) | $ | 1,013 | $ | 375 | $ | 310 | $ | 2,015 | $ | 1,049 | |||||||||||||
| PPA effects 1) | (300 | ) | (32 | ) | (34 | ) | (401 | ) | (167 | ) | |||||||||||||
| Restructuring 2) | (239 | ) | (4 | ) | (12 | ) | (264 | ) | (57 | ) | |||||||||||||
| Stock based compensation 2) | (111 | ) | (34 | ) | (34 | ) | (216 | ) | (133 | ) | |||||||||||||
| Merger-related costs | (27 | ) | (3 | ) | - | (42 | ) | - | |||||||||||||||
| Other incidentals 3) | 1,257 | (1 | ) | 1 | 1,253 | (8 | ) | ||||||||||||||||
| Non-GAAP Operating income (loss) | $ | 433 | $ | 449 | $ | 389 | $ | 1,685 | $ | 1,414 | |||||||||||||
| GAAP Operating margin | 63.1 | % | 24.6 | % | 20.2 | % | 33.0 | % | 18.6 | % | |||||||||||||
| Non-GAAP Operating margin | 27.0 | % | 29.5 | % | 25.3 | % | 27.6 | % | 25.0 | % | |||||||||||||
| GAAP Financial income (expense) | $ | (174 | ) | $ | 16 | $ | (137 | ) | $ | (529 | ) | $ | (410 | ) | |||||||||
| Non-cash interest expense on convertible notes | (10 | ) | (9 | ) | (3 | ) | (38 | ) | (3 | ) | |||||||||||||
| Foreign exchange gain (loss) on debt | (31 | ) | 6 | (91 | ) | (193 | ) | (246 | ) | ||||||||||||||
| Gain (loss) on extinguishment of long term debt | - | - | - | - | (3 | ) | |||||||||||||||||
| Changes in fair value of warrant liability | (1 | ) | 67 | (2 | ) | (31 | ) | (2 | ) | ||||||||||||||
| Other financial expense | (76 | ) | (4 | ) | (4 | ) | (95 | ) | (17 | ) | |||||||||||||
| Non-GAAP Financial income (expense) | $ | (56 | ) | $ | (44 | ) | $ | (37 | ) | $ | (172 | ) | $ | (139 | ) | ||||||||
| GAAP Income tax benefit (provision) | $ | 148 | $ | (15 | ) | $ | (9 | ) | $ | 104 | $ | (40 | ) | ||||||||||
| Other adjustments | 167 | (8 | ) | (2 | ) | 144 | (16 | ) | |||||||||||||||
| Non-GAAP Cash tax (expense) | $ | (19 | ) | $ | (7 | ) | $ | (7 | ) | $ | (40 | ) | $ | (24 | ) | ||||||||
| GAAP Results relating to equity-accounted investees | $ | 2 | $ | 3 | $ | 3 | $ | 9 | $ | 8 | |||||||||||||
| Other adjustments | 2 | 3 | 3 | 9 | 8 | ||||||||||||||||||
| Non-GAAP Results relating to equity-accounted investees | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
| GAAP Net income (loss) | $ | 989 | $ | 379 | $ | 167 | $ | 1,599 | $ | 607 | |||||||||||||
| PPA effects 1) | (300 | ) | (32 | ) | (34 | ) | (401 | ) | (167 | ) | |||||||||||||
| Restructuring 2) | (239 | ) | (4 | ) | (12 | ) | (264 | ) | (57 | ) | |||||||||||||
| Stock based compensation 2) | (111 | ) | (34 | ) | (34 | ) | (216 | ) | (133 | ) | |||||||||||||
| Merger-related costs | (27 | ) | (3 | ) | - | (42 | ) | - | |||||||||||||||
| Other incidentals 3) | 1,257 | (1 | ) | 1 | 1,253 | (8 | ) | ||||||||||||||||
| Other adjustments | 51 | 4 | ) | 55 | (99 | ) | (204 | ) | (279 | ) | |||||||||||||
| Non-GAAP Net income (loss) | $ | 358 | $ | 398 | $ | 345 | $ | 1,473 | $ | 1,251 | |||||||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 972 | $ | 361 | $ | 149 | $ | 1,526 | $ | 539 | |||||||||||||
| PPA effects 1) | (300 | ) | (32 | ) | (34 | ) | (401 | ) | (167 | ) | |||||||||||||
| Restructuring 2) | (239 | ) | (4 | ) | (12 | ) | (264 | ) | (57 | ) | |||||||||||||
| Stock based compensation 2) | (111 | ) | (34 | ) | (34 | ) | (216 | ) | (133 | ) | |||||||||||||
| Merger-related costs | (27 | ) | (3 | ) | - | (42 | ) | - | |||||||||||||||
| Other incidentals 3) | 1,257 | (1 | ) | 1 | 1,253 | (8 | ) | ||||||||||||||||
| Other adjustments | 51 | 4 | ) | 55 | (99 | ) | (204 | ) | (279 | ) | |||||||||||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 341 | $ | 380 | $ | 327 | $ | 1,400 | $ | 1,183 | |||||||||||||
| GAAP Weighted average shares - diluted | 272,785 | 242,122 | 242,901 | 250,116 | 248,609 | ||||||||||||||||||
| Non-GAAP Adjustment | - | - | - | - | - | ||||||||||||||||||
| Non-GAAP Weighted average shares - diluted | 272,785 | 242,122 | 242,901 | 250,116 | 248,609 | ||||||||||||||||||
| GAAP Diluted net income (loss) attributable to stockholders per share | $ | 3.56 | $ | 1.49 | $ | 0.61 | $ | 6.10 | $ | 2.17 | |||||||||||||
| Non-GAAP Diluted net income (loss) attributable to stockholders per share | $ | 1.25 | $ | 1.57 | $ | 1.35 | $ | 5.60 | $ | 4.76 | |||||||||||||
| 1) Includes Purchase Accounting effect on inventory that will be amortized over 4 months. | |||||||||||||||||||||||
| 2) Includes severance, contract termination costs and accelerated vesting charges related to the acquisition of Freescale. | |||||||||||||||||||||||
| 3) Includes the recognition of the gain on the sale of the RF Power and Bipolar businesses. | |||||||||||||||||||||||
| 4) Includes: During 4Q15: Non-cash interest expense on convertible Notes: ($10) million; Foreign exchange loss on debt: ($31) million; Changes in fair value of warrant liability: ($1) million; Other financial expense: ($76) million; Results relating to equity-accounted investees: $2 million; and difference between book and cash income taxes: $167 million. | |||||||||||||||||||||||
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NXP Semiconductors Reports Fourth Quarter and Full-Year 2015 Results
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