(b) Net revenues of "Others" includes revenues from sales of 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 Subsystems and other products. "Others" includes:
| (Million US$) | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | FY
2017 | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | FY
2016 |
| Unused Capacity Charges | 1 | 1 | 1 | 1 | 3 | 4 | 11 | 8 | 10 | 33 |
| Impairment & Restructuring Charges | 20 | 14 | 6 | 5 | 45 | 24 | 29 | 12 | 28 | 93 |
| Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | FY
2017 | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | FY
2016 | |
| €/$ Effective Rate | 1.15 | 1.13 | 1.09 | 1.08 | 1.11 | 1.10 | 1.12 | 1.12 | 1.10 | 1.11 |
| Net Revenues By Market Channel(%) | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | FY
2017 | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | FY 2016 |
| Total OEM | 68% | 66% | 66% | 66% | 66% | 67% | 67% | 66% | 67% | 67% |
| Distribution | 32% | 34% | 34% | 34% | 34% | 33% | 33% | 34% | 33% | 33% |
(Appendix - continued)
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.
