STMicroelectronics
Supplemental Non-U.S. GAAP Financial Information
U. S. GAAP - Non-U.S. GAAP Reconciliation
In Million US$ Except Per Share Data
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.
Operating income (loss) before, impairment, restructuring and one-time items is used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items, such as impairment, restructuring charges and other related closure costs. Adjusted net earnings and earnings per share (EPS) are used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items like impairment, restructuring charges and other related closure costs attributable to ST and other one-time items, net of the relevant tax impact.
Operating income (loss) before impairment, restructuring and one-time items attributable to ST is calculated as operating income (loss) before impairment, restructuring and one-time items excluding 50% of ST-Ericsson operating income (loss) before impairment, restructuring and one-time items as consolidated by ST. Operating margin before impairment, restructuring and one-time items attributable to ST is calculated as operating income (loss) before restructuring attributable to ST divided by reported revenues excluding 50% of ST-Ericsson revenues as consolidated by ST.
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 profits 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 results of operations against investor and analyst financial models and valuations, which usually exclude these items.
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Q2 2013 Operating
(US$ millions and cents per Gross Income Net Corresponding
share) Profit (loss) Earnings EPS
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U.S. GAAP 672 (107) (152) (0.17)
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Impairment & Restructuring 43 41
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Loss on equity-method
investments (3Sun) 69
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Estimated Income Tax Effect (11)
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Non-U.S GAAP 672 (64) (53) (0.06)
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Q1 2013 Operating
(US$ millions and cents per Gross Income Net Corresponding
share) Profit (loss) Earnings EPS
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U.S. GAAP 628 (281) (171) (0.19)
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Impairment & Restructuring 101 58
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Estimated Income Tax Effect (3)
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Non-U.S GAAP 628 (180) (116) (0.13)
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Q2 2012 Operating
(US$ millions and cents per Gross Income Net Corresponding
share) Profit (loss) Earnings EPS
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U.S. GAAP 736 (207) (75) (0.08)
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Impairment & Restructuring 56 28
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Estimated Income Tax Effect -
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Non-U.S GAAP 736 (151) (47) (0.05)
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