(Attachment A - continued)
Net operating cash flow is defined as net cash from operating activities minus net cash used in investing activities, excluding payment for purchases of and proceeds from the sale of marketable securities (both current and non-current), short-term deposits and restricted cash. We believe net operating cash flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operating activities. Net operating cash flow is not a U.S. GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of net operating cash flow may differ from definitions used by other companies. First quarter 2009 cash flow data are not provided below, following a delayed calendar for the final closing of the cash flow statement due to the purchase accounting of acquisitions.
Net Operating Cash Flow (US$ and in millions) Q4 2008 Q1 2008
Net cash from operating activities 390 502
Net cash used in investing activities -172 -453
Proceeds from sale of marketable securities -64 0
Net operating cash flow 154 49
Net operating cash flow (ex M&A) 161 219
Net financial position: resources (debt), represents the balance between our total financial resources and our total financial debt. Our total financial resources include cash and cash equivalents, current and non-current marketable securities, short-term deposits and restricted cash, and our total financial debt include bank overdrafts, the current portion of long-term debt and long-term debt, all as represented in our consolidated balance sheet. We believe our net financial position provides useful information for investors because it gives evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash, cash equivalents and marketable securities and the total level of our financial indebtedness. Net financial position is not a U.S. GAAP measure.
Net Financial Position Q1 2009 Q4 2008 Q1 2008
(US$ and in millions)
Cash and cash equivalents 1,480 1,009 2,060
Marketable securities, current 988 651 1,060
Restricted cash 250 250 250
Marketable securities, non-current 184 242 339
Total cash position 2,902 2,152 3,709
Bank overdrafts -3 -20 0
Current portion of long-term debt -159 -123 -300
Long-term debt -2,486 -2,554 -2,324
Total financial debt -2,648 -2,697 -2,624
------ ------ ------
Net financial position 254 -545 1,085
STMicroelectronics N.V.
Consolidated Statements of Income
(in million of U.S. dollars, except per share data ($))
Three Months Ended
------------------
(Unaudited) (Unaudited)
----------- -----------
March 28, March 30,
2009 2008
---- ----
Net sales 1,657 2,461
Other revenues 3 17
- --
NET REVENUES 1,660 2,478
Cost of sales -1,223 -1,579
------ ------
GROSS PROFIT 437 899
Selling, general and administrative -280 -304
Research and development -557 -509
Other income and expenses, net 63 9
Impairment, restructuring charges and other
related closure costs -56 -183
--- ----
Total Operating Expenses -830 -987
---- ----
OPERATING LOSS -393 -88
Other-than-temporary impairment charge on
financial assets -58 -29
Interest income, net 1 20
Earnings (loss) on equity investments -232 0
Loss on sale of financial assets -8 0
-- -
LOSS BEFORE INCOME TAXES -690 -97
AND NONCONTROLLING INTEREST
Income tax benefit 95 14
-- --
LOSS BEFORE NONCONTROLLING INTEREST -595 -83
Net loss (income) attributable to
noncontrolling interest 54 -1
-- --
NET LOSS ATTRIBUTABLE TO PARENT COMPANY -541 -84
==== ===
LOSS PER SHARE (BASIC) ATTRIBUTABLE TO
PARENT COMPANY SHAREHOLDERS -0.62 -0.09
LOSS PER SHARE (DILUTED) ATTRIBUTABLE TO
PARENT COMPANY SHAREHOLDERS -0.62 -0.09
NUMBER OF WEIGHTED AVERAGE
SHARES USED IN CALCULATING 874.3 899.8
DILUTED LOSS PER SHARE
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at March 28, December 31, March 30,
In million of U.S. dollars 2009 2008 2008
(Unaudited) (Audited) (Unaudited)
----------- --------- -----------
ASSETS
======
Current assets:
Cash and cash equivalents 1,480 1,009 2,060
Marketable securities 988 651 1,060
Trade accounts receivable, net 1,101 1,064 1,546
Inventories, net 1,656 1,840 1,539
Deferred tax assets 248 252 230
Receivables for transactions
performed on behalf, net 11 0 0
Other receivables and assets 885 685 626
--- --- ---
Total current assets 6,369 5,501 7,061
Goodwill 1,138 958 314
Other intangible assets, net 894 863 317
Property, plant and equipment, net 4,341 4,739 5,391
Long-term deferred tax assets 319 373 270
Equity investments 380 510 1,035
Restricted cash 250 250 250
Non-current marketable securities 184 242 339
Other investments and other non-
current assets 333 477 357
--- --- ---
7,839 8,412 8,273
Total assets 14,208 13,913 15,334
------ ------ ------
LIABILITIES AND SHAREHOLDERS' EQUITY
====================================
Current liabilities:
Bank overdrafts 3 20 0
Current portion of long-term debt 159 123 300
Trade accounts payable 707 847 1,114
Other payables and accrued
liabilities 1,054 996 912
Dividends payable to shareholders 0 79 0
Deferred tax liabilities 30 28 13
Accrued income tax 121 125 139
--- --- ---
Total current liabilities 2,074 2,218 2,478
Long-term debt 2,486 2,554 2,324
Reserve for pension and termination
indemnities 313 332 302
Long-term deferred tax liabilities 26 27 32
Other non-current liabilities 355 350 306
--- --- ---
3,180 3,263 2,964
Total liabilities 5,254 5,481 5,442
Commitment and contingencies
Equity
Parent company shareholders' equity
Common stock (preferred stock:
540,000,000 shares authorized, not
issued; 1,156 1,156 1,156
common stock: Euro 1.04 nominal value,
1,200,000,000 shares authorized,
910,307,305 shares issued, 874,327,774
shares outstanding)
Capital surplus 2,455 2,324 2,131
Accumulated result 3,521 4,064 5,190
Accumulated other comprehensive
income 915 1,094 1,635
Treasury stock -480 -482 -274
---- ---- ----
Total parent company shareholders'
equity 7,567 8,156 9,838
Non-controlling interest 1,387 276 54
----- --- --
Total equity 8,954 8,432 9,892
----- ----- -----
Total liabilities and equity 14,208 13,913 15,334
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Web site: http://www.st.com/
