** Mainstream products include wirebond packaging and related test services
In the press release above we provide EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, our ability to service debt and our ability to fund capital expenditures. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.
| Non-GAAP Financial Measure Reconciliation: | |||||||||||||
| Q3 2017 | Q2 2017 | Q3 2016 | |||||||||||
| (in millions) | |||||||||||||
| EBITDA Data: | |||||||||||||
| Net income | $ | 56 | $ | 116 | $ | 61 | |||||||
| Plus: Interest expense | 20 | 22 | 23 | ||||||||||
| Plus: Income tax expense | 19 | 33 | 24 | ||||||||||
| Plus: Depreciation & amortization | 148 | 145 | 141 | ||||||||||
| EBITDA | $ | 243 | $ | 316 | $ | 249 | |||||||
