(tables attached)
Attachment A
STMicroelectronics
Supplemental Non-U.S. GAAP Financial Information
U. S. GAAP - Non-U.S. GAAP Reconciliation
In Million US$ Except Per Share Data
Readers are cautioned that the supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.
Adjusted operating income (loss) is used by our management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items. Adjusted operating income (loss) excludes impairment, restructuring charges and other related closure costs, the impact of purchase accounting (such as in-process R&D costs and inventory step-up charges) and related tax effects.
Adjusted net earnings and earnings per share are used by our management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items. Adjusted earnings exclude impairment, restructuring charges and other related closure costs, the impact of purchase accounting (such as in-process R&D costs and inventory step-up charges), other-than-temporary impairment (OTTI) charges on financial assets, and impairment related to equity investments, net of the relevant tax impact.
The Company believes that these non-GAAP financial measures provide useful information for investors and management because they measure the Company's capacity to generate profitability from its business operations, excluding the effect of acquisitions and expenses related to the rationalizing of its activities and sites that it does not consider to be part of its on-going operating results, thereby offering, when read in conjunction with the Company's GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of the Company's on-going operating results, (ii) the ability to better identify trends in the Company's business and perform related trend analysis, and (iii) an easier way to compare the Company's most recent results of operations against investor and analyst financial models.
Q2 2009 (US$ millions and Operating Net
cents per share) Gross Income Earnings Corresponding
Profit (Loss) (Loss) EPS
------ ------ ------ ---
U.S. GAAP 520 (428) (318) (0.36)
Impairment & Restructuring
attributable to parent
Company's shareholders 74 74
Other-Than-Temporary-Impairment 13
Numonyx Impairment
Estimated Income Tax Effect (12)
Non-U.S GAAP (354) (243) (0.28)
Q2 2009 (US$ millions and Operating Net
cents per share) Gross Income Earnings Corresponding
Profit (Loss) (Loss) EPS
------ ------ ------ ---
U.S. GAAP 437 (393) (541) (0.62)
Impairment & Restructuring 56 56
Other-Than-Temporary-Impairment 58
Numonyx Impairment 200
Estimated Income Tax Effect (40)
Non-U.S GAAP (337) (267) (0.31)
Q2 2009 (US$ millions and Operating Net
cents per share) Gross Income Earnings Corresponding
Profit (Loss) (Loss) EPS
------ ------ ------ ---
U.S. GAAP 880 (26) (47) (0.05)
Impairment & Restructuring 185 185
Other-Than-Temporary-Impairment 39
Estimated Income Tax Effect (13)
Non-U.S GAAP 159 164 0.18
