MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED OPERATING INCOME
(In thousands of U.S. dollars)
(Unaudited)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

2021

2021

2020

2021

2020

Operating income

$

63,870

$

20,001

$

9,206

$

83,407

$

27,016

Adjustments:

Equity-based compensation expense

1,648

2,005

1,945

7,704

6,311

Inventory reserve related to Huawei impact of downstream trade restrictions

(379)

(1,081)

(871)

(1,460)

1,460

Expenses related to Fab 3 power outage

—

—

—

—

1,168

Merger-related costs (income), net

(49,369)

1,552

653

(35,527)

653

Early termination and other charges, net

(1,349)

214

4,422

2,011

4,976

Adjusted operating income

$

14,421

$

22,691

$

15,355

$

56,135

$

41,584