STMicroelectronics Reports 2016 Fourth Quarter and Full Year

STMicroelectronics Reports 2016 Fourth Quarter and Full Year Financial Results

^(a)Net revenues of "Others" includes revenues from sales of Imaging Product Division, Subsystems, assembly services, and other revenue. Operating income (loss) of "Others" includes items such as unused capacity charges, impairment, restructuring charges and other related closure costs, phase out and start-up costs, and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of the Imaging Product Division, Subsystems and other products. "Others" includes $4 million, $11 million, $8 million, $10 million, $30 million, $6 million, $9 million and $19 million of unused capacity charges in the fourth, third, second and first quarters of 2016 and 2015, respectively; and $24 million, $29 million, $12 million, $28 million, $4 million, $11 million, $21 million and $29 million of impairment, restructuring charges, and other related closure costs in the fourth, third, second and first quarters of 2016 and 2015, respectively.

	Q4 2016	Q3 2016	Q2 2016	Q1 2016	FY 2016	Q4 2015	Q3 2015	Q2 2015	Q1 2015	FY 2015
€/$ Effective Rate	1.10	1.12	1.12	1.10	1.11	1.11	1.16	1.17	1.23	1.17

Net Revenues By Market Channel(%)	Q4 2016		Q3 2016		Q2 2016		Q1 2016		FY 2016		Q4 2015		Q3 2015		Q2 2015		Q1 2015		FY 2015
Total OEM	67	%	67	%	66	%	67	%	67	%	67	%	67	%	67	%	70	%	68	%
Distribution	33	%	33	%	34	%	33	%	33	%	33	%	33	%	33	%	30	%	32	%

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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 and restructuring charges 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.

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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