ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share and percentage data) |
|||||||||||||||||||
|
Quarter Ended |
|
Year Ended |
||||||||||||||||
|
December 31,
|
|
October 1,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Revenue |
$ |
1,846.1 |
|
|
$ |
1,742.1 |
|
|
$ |
1,446.3 |
|
|
$ |
6,739.8 |
|
|
$ |
5,255.0 |
|
Cost of revenue (exclusive of amortization shown below) |
|
1,013.9 |
|
|
|
1,021.3 |
|
|
|
948.7 |
|
|
|
4,025.5 |
|
|
|
3,539.2 |
|
Gross profit |
|
832.2 |
|
|
|
720.8 |
|
|
|
497.6 |
|
|
|
2,714.3 |
|
|
|
1,715.8 |
|
Gross margin |
|
45.1 |
% |
|
|
41.4 |
% |
|
|
34.4 |
% |
|
|
40.3 |
% |
|
|
32.7 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
160.6 |
|
|
|
154.5 |
|
|
|
159.7 |
|
|
|
655.0 |
|
|
|
642.9 |
|
Selling and marketing |
|
70.2 |
|
|
|
68.4 |
|
|
|
71.0 |
|
|
|
293.6 |
|
|
|
278.7 |
|
General and administrative |
|
83.5 |
|
|
|
75.7 |
|
|
|
62.4 |
|
|
|
304.8 |
|
|
|
258.7 |
|
Amortization of acquisition-related intangible assets |
|
24.5 |
|
|
|
24.7 |
|
|
|
29.3 |
|
|
|
99.0 |
|
|
|
120.3 |
|
Restructuring, asset impairments and other charges, net |
|
13.1 |
|
|
|
(1.7 |
) |
|
|
7.2 |
|
|
|
71.4 |
|
|
|
65.2 |
|
Intangible asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
1.3 |
|
Total operating expenses |
|
351.9 |
|
|
|
321.6 |
|
|
|
329.6 |
|
|
|
1,426.7 |
|
|
|
1,367.1 |
|
Operating income |
|
480.3 |
|
|
|
399.2 |
|
|
|
168.0 |
|
|
|
1,287.6 |
|
|
|
348.7 |
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
(32.0 |
) |
|
|
(31.9 |
) |
|
|
(41.8 |
) |
|
|
(130.4 |
) |
|
|
(168.4 |
) |
Interest income |
|
0.3 |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
|
1.4 |
|
|
|
4.9 |
|
Loss on debt refinancing and prepayment |
|
(2.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(29.0 |
) |
|
|
— |
|
Gain on divestiture of business |
|
— |
|
|
|
10.2 |
|
|
|
— |
|
|
|
10.2 |
|
|
|
— |
|
Other income (expense) |
|
20.4 |
|
|
|
(5.8 |
) |
|
|
(6.3 |
) |
|
|
18.0 |
|
|
|
(8.6 |
) |
Other income (expense), net |
|
(14.1 |
) |
|
|
(27.0 |
) |
|
|
(47.5 |
) |
|
|
(129.8 |
) |
|
|
(172.1 |
) |
Income before income taxes |
|
466.2 |
|
|
|
372.2 |
|
|
|
120.5 |
|
|
|
1,157.8 |
|
|
|
176.6 |
|
Income tax (provision) benefit |
|
(39.8 |
) |
|
|
(61.8 |
) |
|
|
(30.7 |
) |
|
|
(146.6 |
) |
|
|
59.8 |
|
Net income |
|
426.4 |
|
|
|
310.4 |
|
|
|
89.8 |
|
|
|
1,011.2 |
|
|
|
236.4 |
|
Less: Net income attributable to non-controlling interest |
|
(0.5 |
) |
|
|
(0.7 |
) |
|
|
(0.8 |
) |
|
|
(1.6 |
) |
|
|
(2.2 |
) |
Net income attributable to ON Semiconductor Corporation |
$ |
425.9 |
|
|
$ |
309.7 |
|
|
$ |
89.0 |
|
|
$ |
1,009.6 |
|
|
$ |
234.2 |
|
Net income per share of common stock attributable to ON Semiconductor Corporation: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.99 |
|
|
$ |
0.72 |
|
|
$ |
0.22 |
|
|
$ |
2.37 |
|
|
$ |
0.57 |
|
Diluted |
$ |
0.96 |
|
|
$ |
0.70 |
|
|
$ |
0.21 |
|
|
$ |
2.27 |
|
|
$ |
0.56 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
431.1 |
|
|
|
430.6 |
|
|
|
411.3 |
|
|
|
425.7 |
|
|
|
410.7 |
|
Diluted |
|
445.3 |
|
|
|
440.7 |
|
|
|
431.6 |
|
|
|
443.8 |
|
|
|
418.8 |
|
ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED BALANCE SHEETS (in millions) |
|||||||||||
|
December 31,
|
|
October 1,
|
|
December 31,
|
||||||
Assets |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
1,352.6 |
|
|
$ |
1,389.2 |
|
|
$ |
1,080.7 |
|
Receivables, net |
|
809.4 |
|
|
|
720.0 |
|
|
|
676.0 |
|
Inventories |
|
1,379.5 |
|
|
|
1,327.6 |
|
|
|
1,251.4 |
|
Other current assets |
|
240.1 |
|
|
|
205.0 |
|
|
|
176.0 |
|
Total current assets |
|
3,781.6 |
|
|
|
3,641.8 |
|
|
|
3,184.1 |
|
Property, plant and equipment, net |
|
2,524.3 |
|
|
|
2,427.8 |
|
|
|
2,512.3 |
|
Goodwill |
|
1,937.5 |
|
|
|
1,662.7 |
|
|
|
1,663.4 |
|
Intangible assets, net |
|
495.7 |
|
|
|
390.3 |
|
|
|
469.0 |
|
Deferred tax assets |
|
366.3 |
|
|
|
382.1 |
|
|
|
429.0 |
|
Other assets |
|
520.6 |
|
|
|
436.0 |
|
|
|
410.2 |
|
Total assets |
$ |
9,626.0 |
|
|
$ |
8,940.7 |
|
|
$ |
8,668.0 |
|
Liabilities, Non-Controlling Interest and Stockholders’ Equity |
|
|
|
|
|
||||||
Accounts payable |
$ |
635.1 |
|
|
$ |
599.3 |
|
|
$ |
572.9 |
|
Accrued expenses and other current liabilities |
|
747.6 |
|
|
|
641.8 |
|
|
|
570.0 |
|
Current portion of long-term debt |
|
160.7 |
|
|
|
203.0 |
|
|
|
531.6 |
|
Total current liabilities |
|
1,543.4 |
|
|
|
1,444.1 |
|
|
|
1,674.5 |
|
Long-term debt |
|
2,913.9 |
|
|
|
2,910.5 |
|
|
|
2,959.7 |
|
Deferred tax liabilities |
|
43.2 |
|
|
|
46.8 |
|
|
|
57.3 |
|
Other long-term liabilities |
|
521.1 |
|
|
|
394.9 |
|
|
|
418.4 |
|
Total liabilities |
|
5,021.6 |
|
|
|
4,796.3 |
|
|
|
5,109.9 |
|
ON Semiconductor Corporation stockholders’ equity: |
|
|
|
|
|
||||||
Common stock |
|
6.0 |
|
|
|
6.0 |
|
|
|
5.7 |
|
Additional paid-in capital |
|
4,633.3 |
|
|
|
4,498.5 |
|
|
|
4,133.1 |
|
Accumulated other comprehensive loss |
|
(40.6 |
) |
|
|
(48.6 |
) |
|
|
(57.6 |
) |
Accumulated earnings |
|
2,435.1 |
|
|
|
2,009.2 |
|
|
|
1,425.5 |
|
Less: Treasury stock, at cost |
|
(2,448.4 |
) |
|
|
(2,341.4 |
) |
|
|
(1,968.2 |
) |
Total ON Semiconductor Corporation stockholders’ equity |
|
4,585.4 |
|
|
|
4,123.7 |
|
|
|
3,538.5 |
|
Non-controlling interest |
|
19.0 |
|
|
|
20.7 |
|
|
|
19.6 |
|
Total stockholders' equity |
|
4,604.4 |
|
|
|
4,144.4 |
|
|
|
3,558.1 |
|
Total liabilities and stockholders' equity |
$ |
9,626.0 |
|
|
$ |
8,940.7 |
|
|
$ |
8,668.0 |
|
ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) |
|||||||||||||||||||
|
Quarter Ended |
|
Year Ended |
||||||||||||||||
|
December 31,
|
|
October 1,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
426.4 |
|
|
$ |
310.4 |
|
|
$ |
89.8 |
|
|
$ |
1,011.2 |
|
|
$ |
236.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
140.3 |
|
|
|
149.9 |
|
|
|
153.8 |
|
|
|
596.7 |
|
|
|
625.1 |
|
Gain on divestiture of business |
|
— |
|
|
|
(10.2 |
) |
|
|
— |
|
|
|
(10.2 |
) |
|
|
— |
|
Loss on debt refinancing and prepayment |
|
2.8 |
|
|
|
— |
|
|
|
— |
|
|
|
29.0 |
|
|
|
— |
|
Amortization of debt discount and issuance costs |
|
2.7 |
|
|
|
2.9 |
|
|
|
3.0 |
|
|
|
10.7 |
|
|
|
12.1 |
|
Share-based compensation |
|
27.2 |
|
|
|
22.7 |
|
|
|
16.5 |
|
|
|
101.3 |
|
|
|
67.7 |
|
Non-cash interest on convertible notes |
|
7.1 |
|
|
|
7.0 |
|
|
|
8.8 |
|
|
|
24.7 |
|
|
|
38.2 |
|
Non-cash asset impairment charges |
|
— |
|
|
|
3.3 |
|
|
|
3.3 |
|
|
|
10.8 |
|
|
|
18.8 |
|
Change in deferred tax balances |
|
22.9 |
|
|
|
44.2 |
|
|
|
26.5 |
|
|
|
62.4 |
|
|
|
(122.6 |
) |
Other |
|
1.8 |
|
|
|
2.2 |
|
|
|
3.8 |
|
|
|
4.3 |
|
|
|
7.3 |
|
Changes in assets and liabilities |
|
(4.6 |
) |
|
|
(83.5 |
) |
|
|
94.9 |
|
|
|
(58.9 |
) |
|
|
1.3 |
|
Net cash provided by operating activities |
$ |
626.6 |
|
|
$ |
448.9 |
|
|
$ |
400.4 |
|
|
$ |
1,782.0 |
|
|
$ |
884.3 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of Property, Plant and Equipment ("PP&E") |
$ |
(169.6 |
) |
|
$ |
(93.2 |
) |
|
$ |
(116.4 |
) |
|
$ |
(444.6 |
) |
|
$ |
(383.6 |
) |
Deposits and proceeds from sale of PP&E |
|
7.4 |
|
|
|
— |
|
|
|
4.8 |
|
|
|
14.0 |
|
|
|
6.3 |
|
Deposits utilized (made) for purchase of PP&E |
|
(25.9 |
) |
|
|
(18.7 |
) |
|
|
(0.1 |
) |
|
|
(47.4 |
) |
|
|
2.2 |
|
Divestiture of business, net of cash transferred |
|
3.6 |
|
|
|
3.4 |
|
|
|
— |
|
|
|
7.0 |
|
|
|
— |
|
Purchase of business, net of cash acquired |
|
(399.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(399.4 |
) |
|
|
(4.5 |
) |
Purchase of license and deposit made for manufacturing facility |
|
|
|
|
|
(100.0 |
) |
|
|
— |
|
|
|
(100.0 |
) |
||||
Purchase of available-for-sale securities |
|
(5.1 |
) |
|
|
(43.8 |
) |
|
|
— |
|
|
|
(48.9 |
) |
|
|
— |
|
Proceeds from sale or maturity of available-for-sale securities |
|
1.4 |
|
|
|
2.8 |
|
|
|
— |
|
|
|
4.2 |
|
|
|
— |
|
Settlement of purchase price from previous acquisition |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26.0 |
|
Net cash used in investing activities |
$ |
(587.6 |
) |
|
$ |
(149.5 |
) |
|
$ |
(211.7 |
) |
|
$ |
(915.1 |
) |
|
$ |
(453.6 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds for the issuance of common stock under the ESPP |
$ |
5.0 |
|
|
$ |
6.2 |
|
|
$ |
5.8 |
|
|
$ |
23.5 |
|
|
$ |
23.6 |
|
Payment of tax withholding for RSUs |
|
(4.7 |
) |
|
|
(2.2 |
) |
|
|
(2.9 |
) |
|
|
(38.9 |
) |
|
|
(20.0 |
) |
Repurchase of common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(65.4 |
) |
Issuance and borrowings under debt agreements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
787.3 |
|
|
|
1,858.0 |
|
Reimbursement of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.7 |
|
|
|
— |
|
Payment of debt issuance costs |
|
— |
|
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(3.8 |
) |
|
|
(2.4 |
) |
Repayment of borrowings under debt agreements |
|
(51.7 |
) |
|
|
(4.1 |
) |
|
|
(759.3 |
) |
|
|
(1,270.5 |
) |
|
|
(2,023.9 |
) |
Payment for purchase of bond hedges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(160.3 |
) |
|
|
— |
|
Proceeds from issuance of warrants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
93.8 |
|
|
|
— |
|
Payments related to prior acquisition |
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
(0.6 |
) |
|
|
(3.2 |
) |
|
|
(8.9 |
) |
Dividend to non-controlling shareholder |
|
— |
|
|
|
— |
|
|
|
(5.0 |
) |
|
|
— |
|
|
|
(5.0 |
) |
Net cash used in financing activities |
$ |
(51.6 |
) |
|
$ |
(1.1 |
) |
|
$ |
(762.2 |
) |
|
$ |
(569.4 |
) |
|
$ |
(244.0 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
0.2 |
|
|
|
(1.3 |
) |
|
|
0.6 |
|
Net increase in cash, cash equivalents and restricted cash |
|
(12.9 |
) |
|
|
298.1 |
|
|
|
(573.3 |
) |
|
|
296.2 |
|
|
|
187.3 |
|
Beginning cash, cash equivalents and restricted cash |
|
1,390.6 |
|
|
|
1,092.5 |
|
|
|
1,654.8 |
|
|
|
1,081.5 |
|
|
|
894.2 |
|
Ending cash, cash equivalents and restricted cash |
$ |
1,377.7 |
|
|
$ |
1,390.6 |
|
|
$ |
1,081.5 |
|
|
$ |
1,377.7 |
|
|
$ |
1,081.5 |
|
ON SEMICONDUCTOR CORPORATION RECONCILIATION OF GAAP VERSUS NON-GAAP DISCLOSURES (in millions, except per share and percentage data) |
|||||||||||||||||||||
|
|
|
Quarter Ended |
|
Year Ended |
||||||||||||||||
|
|
|
December 31,
|
|
October 1,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Reconciliation of GAAP to non-GAAP gross profit: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gross profit |
$ |
832.2 |
|
|
$ |
720.8 |
|
|
$ |
497.6 |
|
|
$ |
2,714.3 |
|
|
$ |
1,715.8 |
|
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Non-recurring facility costs |
|
2.3 |
|
|
|
2.5 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
|
|
Total special items |
|
2.3 |
|
|
|
2.5 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
834.5 |
|
|
$ |
723.3 |
|
|
$ |
497.6 |
|
|
$ |
2,719.8 |
|
|
$ |
1,715.8 |
|
||
Reconciliation of GAAP to non-GAAP gross margin: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gross margin |
|
45.1 |
% |
|
|
41.4 |
% |
|
|
34.4 |
% |
|
|
40.3 |
% |
|
|
32.7 |
% |
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Non-recurring facility costs |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
Total special items |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
Non-GAAP gross margin |
|
45.2 |
% |
|
|
41.5 |
% |
|
|
34.4 |
% |
|
|
40.4 |
% |
|
|
32.7 |
% |
||
Reconciliation of GAAP to non-GAAP operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP operating expenses |
$ |
351.9 |
|
|
$ |
321.6 |
|
|
$ |
329.6 |
|
|
$ |
1,426.7 |
|
|
$ |
1,367.1 |
|
||
|
Special items: |
|
|
|
|
|
|
|
|
||||||||||||
|
a) |
Amortization of acquisition-related intangible assets |
|
(24.5 |
) |
|
|
(24.7 |
) |
|
|
(29.3 |
) |
|
|
(99.0 |
) |
|
|
(120.3 |
) |
|
b) |
Restructuring, asset impairments and other, net |
|
(13.1 |
) |
|
|
1.7 |
|
|
|
(7.2 |
) |
|
|
(71.4 |
) |
|
|
(65.2 |
) |
|
c) |
Intangible asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.9 |
) |
|
|
(1.3 |
) |
|
d) |
Third party acquisition and divestiture related costs |
|
(7.9 |
) |
|
|
(2.4 |
) |
|
|
(0.7 |
) |
|
|
(11.9 |
) |
|
|
(1.0 |
) |
|
|
Total special items |
|
(45.5 |
) |
|
|
(25.4 |
) |
|
|
(37.2 |
) |
|
|
(185.2 |
) |
|
|
(187.8 |
) |
Non-GAAP operating expenses |
$ |
306.4 |
|
|
$ |
296.2 |
|
|
$ |
292.4 |
|
|
$ |
1,241.5 |
|
|
$ |
1,179.3 |
|
||
Reconciliation of GAAP to non-GAAP operating income: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP operating income |
$ |
480.3 |
|
|
$ |
399.2 |
|
|
$ |
168 |
|
|
$ |
1,287.6 |
|
|
$ |
348.7 |
|
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Non-recurring facility costs |
|
2.3 |
|
|
|
2.5 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
|
b) |
Amortization of acquisition-related intangible assets |
|
24.5 |
|
|
|
24.7 |
|
|
|
29.3 |
|
|
|
99.0 |
|
|
|
120.3 |
|
|
c) |
Restructuring, asset impairments and other, net |
|
13.1 |
|
|
|
(1.7 |
) |
|
|
7.2 |
|
|
|
71.4 |
|
|
|
65.2 |
|
|
d) |
Intangible asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
1.3 |
|
|
e) |
Third party acquisition and divestiture related costs |
|
7.9 |
|
|
|
2.4 |
|
|
|
0.7 |
|
|
|
11.9 |
|
|
|
1.0 |
|
|
|
Total special items |
|
47.8 |
|
|
|
27.9 |
|
|
|
37.2 |
|
|
|
190.7 |
|
|
|
187.8 |
|
Non-GAAP operating income |
$ |
528.1 |
|
|
$ |
427.1 |
|
|
$ |
205.2 |
|
|
$ |
1,478.3 |
|
|
$ |
536.5 |
|
||
Reconciliation of GAAP to non-GAAP operating margin (operating income / revenue) : |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP operating margin |
|
26.0 |
% |
|
|
22.9 |
% |
|
|
11.6 |
% |
|
|
19.1 |
% |
|
|
6.6 |
% |
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Non-recurring facility costs |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
b) |
Amortization of acquisition-related intangible assets |
|
1.3 |
% |
|
|
1.4 |
% |
|
|
2.0 |
% |
|
|
1.5 |
% |
|
|
2.3 |
% |
|
c) |
Restructuring, asset impairments and other, net |
|
0.7 |
% |
|
|
(0.1 |
) % |
|
|
0.5 |
% |
|
|
1.1 |
% |
|
|
1.2 |
% |
|
d) |
Intangible asset impairment |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
e) |
Third party acquisition and divestiture related costs |
|
0.4 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.2 |
% |
|
|
— |
% |
|
|
Total special items |
|
2.6 |
% |
|
|
1.6 |
% |
|
|
2.6 |
% |
|
|
2.8 |
% |
|
|
3.6 |
% |
Non-GAAP operating margin |
|
28.6 |
% |
|
|
24.5 |
% |
|
|
14.2 |
% |
|
|
21.9 |
% |
|
|
10.2 |
% |
||
Reconciliation of GAAP to non-GAAP income before income taxes: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP income before income taxes |
$ |
466.2 |
|
|
$ |
372.2 |
|
|
$ |
120.5 |
|
|
$ |
1,157.8 |
|
|
$ |
176.6 |
|
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Non-recurring facility costs |
|
2.3 |
|
|
|
2.5 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
|
b) |
Amortization of acquisition-related intangible assets |
|
24.5 |
|
|
|
24.7 |
|
|
|
29.3 |
|
|
|
99.0 |
|
|
|
120.3 |
|
|
c) |
Restructuring, asset impairments and other, net |
|
13.1 |
|
|
|
(1.7 |
) |
|
|
7.2 |
|
|
|
71.4 |
|
|
|
65.2 |
|
|
d) |
Intangible asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
1.3 |
|
|
e) |
Third party acquisition and divestiture related costs |
|
7.9 |
|
|
|
2.4 |
|
|
|
0.7 |
|
|
|
11.9 |
|
|
|
1.0 |
|
|
f) |
Actuarial (gains) losses on pension plans and other pension benefits |
|
(22.2 |
) |
|
|
5.5 |
|
|
|
4.0 |
|
|
|
(16.7 |
) |
|
|
4.0 |
|
|
g) |
Loss on debt refinancing and prepayment |
|
2.8 |
|
|
|
— |
|
|
|
— |
|
|
|
29.0 |
|
|
|
— |
|
|
h) |
Non-cash interest on convertible notes |
|
7.1 |
|
|
|
7.0 |
|
|
|
8.8 |
|
|
|
24.7 |
|
|
|
38.2 |
|
|
i) |
Gain on divestiture of a business |
|
— |
|
|
|
(10.2 |
) |
|
|
— |
|
|
|
(10.2 |
) |
|
|
— |
|
|
|
Total special items |
|
35.5 |
|
|
|
30.2 |
|
|
|
50.0 |
|
|
|
217.5 |
|
|
|
230.0 |
|
Non-GAAP income before income taxes |
$ |
501.7 |
|
|
$ |
402.4 |
|
|
$ |
170.5 |
|
|
$ |
1,375.3 |
|
|
$ |
406.6 |
|
||
Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP net income attributable to ON Semiconductor Corporation |
$ |
425.9 |
|
|
$ |
309.7 |
|
|
$ |
89.0 |
|
|
$ |
1,009.6 |
|
|
$ |
234.2 |
|
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Non-recurring facility costs |
|
2.3 |
|
|
|
2.5 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
|
b) |
Amortization of acquisition-related intangible assets |
|
24.5 |
|
|
|
24.7 |
|
|
|
29.3 |
|
|
|
99.0 |
|
|
|
120.3 |
|
|
c) |
Restructuring, asset impairments and other, net |
|
13.1 |
|
|
|
(1.7 |
) |
|
|
7.2 |
|
|
|
71.4 |
|
|
|
65.2 |
|
|
d) |
Intangible asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
1.3 |
|
|
e) |
Third party acquisition and divestiture related costs |
|
7.9 |
|
|
|
2.4 |
|
|
|
0.7 |
|
|
|
11.9 |
|
|
|
1.0 |
|
|
f) |
Actuarial (gains) losses on pension plans and other pension benefits |
|
(22.2 |
) |
|
|
5.5 |
|
|
|
4.0 |
|
|
|
(16.7 |
) |
|
|
4.0 |
|
|
g) |
Loss on debt refinancing and prepayment |
|
2.8 |
|
|
|
— |
|
|
|
— |
|
|
|
29.0 |
|
|
|
— |
|
|
h) |
Non-cash interest on convertible notes |
|
7.1 |
|
|
|
7.0 |
|
|
|
8.8 |
|
|
|
24.7 |
|
|
|
38.2 |
|
|
i) |
Gain on divestiture of a business |
|
— |
|
|
|
(10.2 |
) |
|
|
— |
|
|
|
(10.2 |
) |
|
|
— |
|
|
j) |
Adjustment of income taxes |
|
16.6 |
|
|
|
40.4 |
|
|
|
8.1 |
|
|
|
58.4 |
|
|
|
(112.3 |
) |
|
|
Total special items |
|
52.1 |
|
|
|
70.6 |
|
|
|
58.1 |
|
|
|
275.9 |
|
|
|
117.7 |
|
Non-GAAP net income attributable to ON Semiconductor Corporation |
$ |
478.0 |
|
|
$ |
380.3 |
|
|
$ |
147.1 |
|
|
$ |
1,285.5 |
|
|
$ |
351.9 |
|
||
Adjustment of income taxes: |
|
|
|
|
|
|
|
|
|
||||||||||||
Tax adjustment for special items (1) |
$ |
(7.5 |
) |
|
$ |
(6.3 |
) |
|
$ |
(10.5 |
) |
|
$ |
(45.7 |
) |
|
$ |
(48.3 |
) |
||
Impact of Domestication of non-U.S. IP and related effects (2) |
|
— |
|
|
|
— |
|
|
|
(2.1 |
) |
|
|
— |
|
|
|
(112.4 |
) |
||
Other non-GAAP tax adjustment (3) |
|
24.1 |
|
|
|
46.7 |
|
|
|
20.7 |
|
|
|
104.1 |
|
|
|
48.4 |
|
||
|
|
Total adjustment of income taxes |
$ |
16.6 |
|
|
$ |
40.4 |
|
|
$ |
8.1 |
|
|
$ |
58.4 |
|
|
$ |
(112.3 |
) |
Reconciliation of GAAP to non-GAAP diluted shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP diluted shares outstanding |
|
445.3 |
|
|
|
440.7 |
|
|
|
431.6 |
|
|
|
443.8 |
|
|
|
418.8 |
|
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Less: dilutive shares attributable to convertible notes |
|
(6.9 |
) |
|
|
(5.0 |
) |
|
|
(14.8 |
) |
|
|
(8.6 |
) |
|
|
(5.5 |
) |
|
|
Total special items |
|
(6.9 |
) |
|
|
(5.0 |
) |
|
|
(14.8 |
) |
|
|
(8.6 |
) |
|
|
(5.5 |
) |
Non-GAAP diluted shares outstanding |
|
438.4 |
|
|
|
435.7 |
|
|
|
416.8 |
|
|
|
435.2 |
|
|
|
413.3 |
|
||
Non-GAAP diluted earnings per share: |
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP net income attributable to ON Semiconductor Corporation |
$ |
478.0 |
|
|
$ |
380.3 |
|
|
$ |
147.1 |
|
|
$ |
1,285.5 |
|
|
$ |
351.9 |
|
||
Non-GAAP diluted shares outstanding |
|
438.4 |
|
|
|
435.7 |
|
|
|
416.8 |
|
|
|
435.2 |
|
|
|
413.3 |
|
||
Non-GAAP diluted earnings per share |
$ |
1.09 |
|
|
$ |
0.87 |
|
|
$ |
0.35 |
|
|
$ |
2.95 |
|
|
$ |
0.85 |
|
||
Reconciliation of net cash provided by operating activities to free cash flow: |
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities |
$ |
626.6 |
|
|
$ |
448.9 |
|
|
$ |
400.4 |
|
|
$ |
1,782.0 |
|
|
$ |
884.3 |
|
||
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
a) |
Purchase of property, plant and equipment |
|
(169.6 |
) |
|
|
(93.2 |
) |
|
|
(116.4 |
) |
|
|
(444.6 |
) |
|
|
(383.6 |
) |
|
|
Total special items |
|
(169.6 |
) |
|
|
(93.2 |
) |
|
|
(116.4 |
) |
|
|
(444.6 |
) |
|
|
(383.6 |
) |
Free cash flow |
$ |
457.0 |
|
|
$ |
355.7 |
|
|
$ |
284.0 |
|
|
$ |
1,337.4 |
|
|
$ |
500.7 |
|
(1) |
Tax impact of non-GAAP special items (a-i) is calculated using the federal statutory rate of 21% for all periods presented. |
|
(2) |
The Company simplified its corporate structure by repatriating the economic rights of its non-U.S. intellectual property to the United States via domestication of certain foreign subsidiaries (the "Domestication"). The Domestication resulted in a benefit from recognizing certain deferred tax assets, net of deferred tax liabilities, of $62.9 million. Additionally, the Domestication caused the Company to reassess the full valuation allowance recorded against its U.S. state deferred tax assets. As a result, the Company released approximately $49.5 million of its valuation allowance recorded against its U.S. state deferred tax assets. |
|
(3) |
The income tax adjustment primarily represents the use of the net operating loss, non-cash impact of not asserting indefinite reinvestment on earnings of our foreign subsidiaries, deferred tax expense not affecting taxes payable, and non-cash expense (benefit) related to uncertain tax positions. |