| (a) Net revenues of Others includes revenues from sales assembly services and other revenue. Operating income (loss) of Others includes items such as unused capacity charges, reduced manufacturing activity due to COVID-19, impairment, restructuring charges and other related closure costs, management reorganization 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 other products. Others includes: |
| (US$ m) | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 |
| Unused Capacity Charges | 34 | 29 | 28 | 7 | 1 |
| Impairment & Restructuring Charges | 5 | 3 | - | 2 | - |
(Appendix – continued)
STMicroelectronics
Supplemental Non-U.S. GAAP Financial Information
U. S. GAAP – Non-U.S. GAAP Reconciliation
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.
The Company believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with the Company’s U.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) to facilitate a comparison of the Company’s results of operations against investor and analyst financial models and valuations, which may exclude these items.
Net Financial Position (non-U.S. GAAP measure)
Net Financial Position, not a U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total financial resources include cash and cash equivalents, marketable securities, restricted cash and short-term deposits, and our total financial debt includes short-term debt, including bank overdrafts, and long-term debt, as represented in our Consolidated Balance Sheets.
We believe our Net Financial Position provides useful information for investors and management because it gives evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, short-term deposits and marketable securities and the total level of our financial indebtedness. In addition, our definition of Net Financial Position may differ from definitions used by other companies and therefore comparability may be limited.
| (US$ m) | Mar 28 2020 | Dec 31 2019 | Sep 28 2019 | Jun 29 2019 | Mar 30 2019 |
| Cash and cash equivalents | 2,028 | 2,597 | 2,345 | 2,119 | 2,307 |
| Restricted cash | 10 | 10 | 60 | 60 | 60 |
| Short term deposits | 537 | 4 | - | - | - |
| Marketable securities | 135 | 133 | 133 | 333 | 331 |
| Total liquidity | 2,710 | 2,744 | 2,538 | 2,512 | 2,698 |
| Short-term debt | (171) | (173) | (171) | (174) | (173) |
| Long-term debt (1) | (1,871) | (1,899) | (2,019) | (2,030) | (2,015) |
| Total financial debt | (2,042) | (2,072) | (2,190) | (2,204) | (2,188) |
| Net Financial Position | 668 | 672 | 348 | 308 | 510 |
