ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) |
|||||||||||||||||||
|
Quarters Ended |
|
Nine Months Ended |
||||||||||||||||
|
September
|
|
July 1, 2022 |
|
October 1, 2021 |
|
September 30, 2022 |
|
October 1,
|
||||||||||
Revenue |
$ |
2,192.6 |
|
|
$ |
2,085.0 |
|
|
$ |
1,742.1 |
|
|
$ |
6,222.6 |
|
|
$ |
4,893.7 |
|
Cost of revenue (exclusive of amortization shown below) |
|
1,134.3 |
|
|
|
1,047.9 |
|
|
|
1,021.3 |
|
|
|
3,165.9 |
|
|
|
3,011.6 |
|
Gross profit |
|
1,058.3 |
|
|
|
1,037.1 |
|
|
|
720.8 |
|
|
|
3,056.7 |
|
|
|
1,882.1 |
|
Gross margin |
|
48.3 |
% |
|
|
49.7 |
% |
|
|
41.4 |
% |
|
|
49.1 |
% |
|
|
38.5 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
145.4 |
|
|
|
161.6 |
|
|
|
154.5 |
|
|
|
463.8 |
|
|
|
494.4 |
|
Selling and marketing |
|
69.5 |
|
|
|
73.1 |
|
|
|
68.4 |
|
|
|
213.7 |
|
|
|
223.4 |
|
General and administrative |
|
84.9 |
|
|
|
83.2 |
|
|
|
75.7 |
|
|
|
246.0 |
|
|
|
221.3 |
|
Amortization of acquisition-related intangible assets |
|
21.9 |
|
|
|
21.9 |
|
|
|
24.7 |
|
|
|
65.1 |
|
|
|
74.5 |
|
Restructuring, asset impairments and other, net |
|
40.3 |
|
|
|
(1.7 |
) |
|
|
(1.7 |
) |
|
|
25.6 |
|
|
|
58.3 |
|
Goodwill and intangible asset impairment |
|
271.8 |
|
|
|
115.0 |
|
|
|
— |
|
|
|
386.8 |
|
|
|
2.9 |
|
Total operating expenses |
|
633.8 |
|
|
|
453.1 |
|
|
|
321.6 |
|
|
|
1,401.0 |
|
|
|
1,074.8 |
|
Operating income |
|
424.5 |
|
|
|
584.0 |
|
|
|
399.2 |
|
|
|
1,655.7 |
|
|
|
807.3 |
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
(23.7 |
) |
|
|
(22.1 |
) |
|
|
(31.9 |
) |
|
|
(67.4 |
) |
|
|
(98.4 |
) |
Interest income |
|
4.9 |
|
|
|
1.1 |
|
|
|
0.5 |
|
|
|
6.4 |
|
|
|
1.1 |
|
Loss on debt refinancing and prepayment |
|
— |
|
|
|
(7.3 |
) |
|
|
— |
|
|
|
(7.3 |
) |
|
|
(26.2 |
) |
Gain on divestiture of business |
|
0.2 |
|
|
|
1.9 |
|
|
|
10.2 |
|
|
|
2.1 |
|
|
|
10.2 |
|
Other income (expense) |
|
0.9 |
|
|
|
6.4 |
|
|
|
(5.8 |
) |
|
|
9.4 |
|
|
|
(2.4 |
) |
Other income (expense), net |
|
(17.7 |
) |
|
|
(20.0 |
) |
|
|
(27.0 |
) |
|
|
(56.8 |
) |
|
|
(115.7 |
) |
Income before income taxes |
|
406.8 |
|
|
|
564.0 |
|
|
|
372.2 |
|
|
|
1,598.9 |
|
|
|
691.6 |
|
Income tax provision |
|
(94.9 |
) |
|
|
(107.4 |
) |
|
|
(61.8 |
) |
|
|
(299.4 |
) |
|
|
(106.8 |
) |
Net income |
|
311.9 |
|
|
|
456.6 |
|
|
|
310.4 |
|
|
|
1,299.5 |
|
|
|
584.8 |
|
Less: Net income attributable to non-controlling interest |
|
— |
|
|
|
(0.8 |
) |
|
|
(0.7 |
) |
|
|
(1.6 |
) |
|
|
(1.1 |
) |
Net income attributable to ON Semiconductor Corporation |
$ |
311.9 |
|
|
$ |
455.8 |
|
|
$ |
309.7 |
|
|
$ |
1,297.9 |
|
|
$ |
583.7 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income for diluted earnings per share of common stock |
$ |
312.4 |
|
|
$ |
456.3 |
|
|
$ |
309.7 |
|
|
$ |
1,299.4 |
|
|
$ |
583.7 |
|
Net income per share of common stock: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.72 |
|
|
$ |
1.05 |
|
|
$ |
0.72 |
|
|
$ |
2.99 |
|
|
$ |
1.38 |
|
Diluted |
$ |
0.70 |
|
|
$ |
1.02 |
|
|
$ |
0.70 |
|
|
$ |
2.90 |
|
|
$ |
1.32 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
432.9 |
|
|
|
434.2 |
|
|
|
430.6 |
|
|
|
433.5 |
|
|
|
423.8 |
|
Diluted |
|
448.7 |
|
|
|
447.0 |
|
|
|
440.7 |
|
|
|
448.3 |
|
|
|
443.1 |
|
ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED BALANCE SHEETS (in millions) |
|||||
|
September
|
|
July 1, 2022 |
|
December 31,
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ 2,450.2 |
|
$ 1,791.6 |
|
$ 1,352.6 |
Receivables, net |
857.3 |
|
1,138.1 |
|
809.4 |
Inventories |
1,575.4 |
|
1,563.2 |
|
1,379.5 |
Assets held-for-sale |
135.0 |
|
— |
|
— |
Other current assets |
291.5 |
|
292.4 |
|
240.1 |
Total current assets |
5,309.4 |
|
4,785.3 |
|
3,781.6 |
Property, plant and equipment, net |
2,762.1 |
|
2,709.8 |
|
2,524.3 |
Goodwill |
1,600.4 |
|
1,815.4 |
|
1,937.5 |
Intangible assets, net |
373.8 |
|
452.6 |
|
495.7 |
Deferred tax assets |
409.9 |
|
375.7 |
|
366.3 |
Other assets |
645.1 |
|
649.9 |
|
520.6 |
Total assets |
$ 11,100.7 |
|
$ 10,788.7 |
|
$ 9,626.0 |
Liabilities, Non-Controlling Interest and Stockholders’ Equity |
|
|
|
|
|
Accounts payable |
$ 791.7 |
|
$ 793.8 |
|
$ 635.1 |
Accrued expenses and other current liabilities |
766.7 |
|
754.3 |
|
747.6 |
Liabilities held-for-sale |
37.3 |
|
— |
|
— |
Current portion of long-term debt |
165.3 |
|
165.2 |
|
160.7 |
Total current liabilities |
1,761.0 |
|
1,713.3 |
|
1,543.4 |
Long-term debt |
3,046.5 |
|
3,047.4 |
|
2,913.9 |
Deferred tax liabilities |
30.5 |
|
36.8 |
|
43.2 |
Other long-term liabilities |
586.1 |
|
581.1 |
|
521.1 |
Total liabilities |
5,424.1 |
|
5,378.6 |
|
5,021.6 |
ON Semiconductor Corporation stockholders’ equity: |
|
|
|
|
|
Common stock |
6.1 |
|
6.1 |
|
6.0 |
Additional paid-in capital |
4,598.8 |
|
4,565.9 |
|
4,633.3 |
Accumulated other comprehensive loss |
(23.4) |
|
(29.3) |
|
(40.6) |
Accumulated earnings |
3,760.1 |
|
3,448.2 |
|
2,435.1 |
Less: Treasury stock, at cost |
(2,685.6) |
|
(2,601.4) |
|
(2,448.4) |
Total ON Semiconductor Corporation stockholders’ equity |
5,656.0 |
|
5,389.5 |
|
4,585.4 |
Non-controlling interest |
20.6 |
|
20.6 |
|
19.0 |
Total stockholders' equity |
5,676.6 |
|
5,410.1 |
|
4,604.4 |
Total liabilities and stockholders' equity |
$ 11,100.7 |
|
$ 10,788.7 |
|
$ 9,626.0 |
ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) |
|||||||||||||||||||
|
Quarters Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30,
|
|
July 1, 2022 |
|
October 1,
|
|
September 30,
|
|
October 1,
|
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
311.9 |
|
|
$ |
456.6 |
|
|
$ |
310.4 |
|
|
$ |
1,299.5 |
|
|
$ |
584.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
139.6 |
|
|
|
138.4 |
|
|
|
149.9 |
|
|
|
418.6 |
|
|
|
456.4 |
|
(Gain) loss on sale and disposal of fixed assets |
|
(16.5 |
) |
|
|
— |
|
|
|
2.0 |
|
|
|
(33.1 |
) |
|
|
2.3 |
|
Gain on divestiture of business |
|
(0.2 |
) |
|
|
(1.9 |
) |
|
|
(10.2 |
) |
|
|
(2.1 |
) |
|
|
(10.2 |
) |
Loss on debt refinancing and prepayment |
|
— |
|
|
|
7.3 |
|
|
|
— |
|
|
|
7.3 |
|
|
|
26.2 |
|
Amortization of debt discount and issuance costs |
|
2.6 |
|
|
|
2.8 |
|
|
|
2.9 |
|
|
|
8.6 |
|
|
|
8.0 |
|
Share-based compensation |
|
26.9 |
|
|
|
27.1 |
|
|
|
22.7 |
|
|
|
76.5 |
|
|
|
74.1 |
|
Non-cash interest on convertible notes |
|
— |
|
|
|
— |
|
|
|
7.0 |
|
|
|
— |
|
|
|
17.6 |
|
Non-cash asset impairment charges |
|
11.9 |
|
|
|
— |
|
|
|
3.3 |
|
|
|
18.6 |
|
|
|
10.8 |
|
Goodwill and intangible asset impairment charge |
|
271.8 |
|
|
|
115.0 |
|
|
|
— |
|
|
|
386.8 |
|
|
|
— |
|
Change in deferred tax balances |
|
(71.3 |
) |
|
|
(31.6 |
) |
|
|
44.2 |
|
|
|
(64.6 |
) |
|
|
39.5 |
|
Other |
|
(0.7 |
) |
|
|
0.8 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
0.2 |
|
Changes in assets and liabilities |
|
326.4 |
|
|
|
(293.7 |
) |
|
|
(83.5 |
) |
|
|
(214.9 |
) |
|
|
(54.3 |
) |
Net cash provided by operating activities |
$ |
1,002.4 |
|
|
$ |
420.8 |
|
|
$ |
448.9 |
|
|
$ |
1,901.8 |
|
|
$ |
1,155.4 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of Property, Plant and Equipment ("PP&E") |
$ |
(271.1 |
) |
|
$ |
(218.1 |
) |
|
$ |
(93.2 |
) |
|
$ |
(663.0 |
) |
|
$ |
(275.0 |
) |
Proceeds from sale of PP&E |
|
20.8 |
|
|
|
1.5 |
|
|
|
— |
|
|
|
59.0 |
|
|
|
6.6 |
|
Deposits made for purchase of PP&E |
|
(22.3 |
) |
|
|
(33.0 |
) |
|
|
(18.7 |
) |
|
|
(53.7 |
) |
|
|
(21.5 |
) |
Divestiture of business, net of cash transferred and deposits received |
|
— |
|
|
|
77.6 |
|
|
|
3.4 |
|
|
|
90.5 |
|
|
|
3.4 |
|
Payments related to prior acquisition |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.4 |
) |
|
|
— |
|
Purchase of available-for-sale securities |
|
(1.7 |
) |
|
|
(8.5 |
) |
|
|
(43.8 |
) |
|
|
(18.0 |
) |
|
|
(43.8 |
) |
Proceeds from sale or maturity of available-for-sale securities |
|
10.2 |
|
|
|
10.4 |
|
|
|
2.8 |
|
|
|
24.0 |
|
|
|
2.8 |
|
Net cash used in investing activities |
$ |
(264.1 |
) |
|
$ |
(170.1 |
) |
|
$ |
(149.5 |
) |
|
$ |
(563.6 |
) |
|
$ |
(327.5 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds for the issuance of common stock under the ESPP |
$ |
5.7 |
|
|
$ |
4.7 |
|
|
$ |
6.2 |
|
|
$ |
18.2 |
|
|
$ |
18.5 |
|
Payment of tax withholding for RSUs |
|
(4.1 |
) |
|
|
(4.5 |
) |
|
|
(2.2 |
) |
|
|
(67.4 |
) |
|
|
(34.2 |
) |
Repurchase of common stock |
|
(77.2 |
) |
|
|
(89.7 |
) |
|
|
— |
|
|
|
(166.9 |
) |
|
|
— |
|
Issuance and borrowings under debt agreements |
|
— |
|
|
|
500.0 |
|
|
|
— |
|
|
|
500.0 |
|
|
|
787.3 |
|
Reimbursement of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.7 |
|
Payment of debt issuance and other financing costs |
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
(3.8 |
) |
Repayment of borrowings under debt agreements |
|
(2.7 |
) |
|
|
(502.7 |
) |
|
|
(4.1 |
) |
|
|
(509.5 |
) |
|
|
(1,218.8 |
) |
Payment for purchase of bond hedges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(160.3 |
) |
Proceeds from issuance of warrants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
93.8 |
|
Payments related to prior acquisition |
|
— |
|
|
|
— |
|
|
|
(0.7 |
) |
|
|
— |
|
|
|
(3.0 |
) |
Payment of finance lease obligations |
|
(1.6 |
) |
|
|
(10.9 |
) |
|
|
— |
|
|
|
(12.5 |
) |
|
|
— |
|
Dividend to non-controlling shareholder |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.2 |
) |
|
|
— |
|
Net cash used in financing activities |
$ |
(79.9 |
) |
|
$ |
(103.1 |
) |
|
$ |
(1.1 |
) |
|
$ |
(240.3 |
) |
|
$ |
(517.8 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(0.6 |
) |
|
|
(1.9 |
) |
|
|
(0.2 |
) |
|
|
(3.2 |
) |
|
|
(1.0 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
657.8 |
|
|
|
145.7 |
|
|
|
298.1 |
|
|
|
1,094.7 |
|
|
|
309.1 |
|
Beginning cash, cash equivalents and restricted cash |
|
1,814.6 |
|
|
|
1,668.9 |
|
|
|
1,092.5 |
|
|
|
1,377.7 |
|
|
|
1,081.5 |
|
Ending cash, cash equivalents and restricted cash |
$ |
2,472.4 |
|
|
$ |
1,814.6 |
|
|
$ |
1,390.6 |
|
|
$ |
2,472.4 |
|
|
$ |
1,390.6 |
|
ON SEMICONDUCTOR CORPORATION RECONCILIATION OF GAAP VERSUS NON-GAAP DISCLOSURES (in millions, except per share and percentage data) |
||||||||||||||||||||
|
|
Quarters Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
September 30,
|
|
July 1, 2022 |
|
October 1,
|
|
September 30,
|
|
October 1,
|
||||||||||
Reconciliation of GAAP to non-GAAP gross profit: |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP gross profit |
$ |
1,058.3 |
|
|
$ |
1,037.1 |
|
|
$ |
720.8 |
|
|
$ |
3,056.7 |
|
|
$ |
1,882.1 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Non-recurring facility costs |
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
|
— |
|
|
|
3.2 |
|
b) |
Impact of business wind down |
|
23.1 |
|
|
|
— |
|
|
|
— |
|
|
|
23.1 |
|
|
|
— |
|
|
Total special items |
|
23.1 |
|
|
|
— |
|
|
|
2.5 |
|
|
|
23.1 |
|
|
|
3.2 |
|
Non-GAAP gross profit |
$ |
1,081.4 |
|
|
$ |
1,037.1 |
|
|
$ |
723.3 |
|
|
$ |
3,079.8 |
|
|
$ |
1,885.3 |
|
|
Reconciliation of GAAP to non-GAAP gross margin: |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP gross margin |
|
48.3 |
% |
|
|
49.7 |
% |
|
|
41.4 |
% |
|
|
49.1 |
% |
|
|
38.5 |
% |
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Non-recurring facility costs |
|
— |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
b) |
Impact of business wind down |
|
1.1 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.4 |
% |
|
|
— |
% |
|
Total special items |
|
1.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
0.4 |
% |
|
|
— |
% |
Non-GAAP gross margin |
|
49.3 |
% |
|
|
49.7 |
% |
|
|
41.5 |
% |
|
|
49.5 |
% |
|
|
38.5 |
% |
|
Reconciliation of GAAP to non-GAAP operating expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP operating expenses |
$ |
633.8 |
|
|
$ |
453.1 |
|
|
$ |
321.6 |
|
|
$ |
1,401.0 |
|
|
$ |
1,074.8 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Amortization of acquisition-related intangible assets |
|
(21.9 |
) |
|
|
(21.9 |
) |
|
|
(24.7 |
) |
|
|
(65.1 |
) |
|
|
(74.5 |
) |
b) |
Restructuring, asset impairments and other, net |
|
(40.3 |
) |
|
|
1.7 |
|
|
|
1.7 |
|
|
|
(25.6 |
) |
|
|
(58.3 |
) |
c) |
Goodwill and intangible asset impairment |
|
(271.8 |
) |
|
|
(115.0 |
) |
|
|
— |
|
|
|
(386.8 |
) |
|
|
(2.9 |
) |
d) |
Third party acquisition and divestiture-related costs |
|
(2.3 |
) |
|
|
(0.2 |
) |
|
|
(2.4 |
) |
|
|
(5.5 |
) |
|
|
(4.0 |
) |
e) |
Impact of business wind down |
|
6.8 |
|
|
|
— |
|
|
|
— |
|
|
|
6.8 |
|
|
|
— |
|
|
Total special items |
|
(329.5 |
) |
|
|
(135.4 |
) |
|
|
(25.4 |
) |
|
|
(476.2 |
) |
|
|
(139.7 |
) |
Non-GAAP operating expenses |
$ |
304.3 |
|
|
$ |
317.7 |
|
|
$ |
296.2 |
|
|
$ |
924.8 |
|
|
$ |
935.1 |
|
|
Reconciliation of GAAP to non-GAAP operating income: |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP operating income |
$ |
424.5 |
|
|
$ |
584.0 |
|
|
$ |
399.2 |
|
|
$ |
1,655.7 |
|
|
$ |
807.3 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Non-recurring facility costs |
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
|
— |
|
|
|
3.2 |
|
b) |
Impact of business wind down |
|
16.3 |
|
|
|
— |
|
|
|
— |
|
|
|
16.3 |
|
|
|
— |
|
c) |
Amortization of acquisition-related intangible assets |
|
21.9 |
|
|
|
21.9 |
|
|
|
24.7 |
|
|
|
65.1 |
|
|
|
74.5 |
|
d) |
Restructuring, asset impairments and other, net |
|
40.3 |
|
|
|
(1.7 |
) |
|
|
(1.7 |
) |
|
|
25.6 |
|
|
|
58.3 |
|
e) |
Goodwill and intangible asset impairment |
|
271.8 |
|
|
|
115.0 |
|
|
|
— |
|
|
|
386.8 |
|
|
|
2.9 |
|
f) |
Third party acquisition and divestiture-related costs |
|
2.3 |
|
|
|
0.2 |
|
|
|
2.4 |
|
|
|
5.5 |
|
|
|
4.0 |
|
|
Total special items |
|
352.6 |
|
|
|
135.4 |
|
|
|
27.9 |
|
|
|
499.3 |
|
|
|
142.9 |
|
Non-GAAP operating income |
$ |
777.1 |
|
|
$ |
719.4 |
|
|
$ |
427.1 |
|
|
$ |
2,155.0 |
|
|
$ |
950.2 |
|
|
Reconciliation of GAAP to non-GAAP operating margin (operating income / revenue) : |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP operating margin |
|
19.4 |
% |
|
|
28.0 |
% |
|
|
22.9 |
% |
|
|
26.6 |
% |
|
|
16.5 |
% |
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Non-recurring facility costs |
|
— |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
b) |
Impact of business wind down |
|
0.7 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.3 |
% |
|
|
— |
% |
c) |
Amortization of acquisition-related intangible assets |
|
1.0 |
% |
|
|
1.1 |
% |
|
|
1.4 |
% |
|
|
1.0 |
% |
|
|
1.5 |
% |
d) |
Restructuring, asset impairments and other, net |
|
1.8 |
% |
|
|
(0.1 |
) % |
|
|
(0.1 |
) % |
|
|
0.4 |
% |
|
|
1.2 |
% |
e) |
Goodwill and intangible asset impairment |
|
12.4 |
% |
|
|
5.5 |
% |
|
|
— |
% |
|
|
6.2 |
% |
|
|
0.1 |
% |
f) |
Third party acquisition and divestiture-related costs |
|
0.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
Total special items |
|
16.0 |
% |
|
|
6.5 |
% |
|
|
1.6 |
% |
|
|
8.0 |
% |
|
|
2.9 |
% |
Non-GAAP operating margin |
|
35.4 |
% |
|
|
34.5 |
% |
|
|
24.5 |
% |
|
|
34.6 |
% |
|
|
19.4 |
% |
|
Reconciliation of GAAP to non-GAAP income before income taxes: |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP income before income taxes |
$ |
406.8 |
|
|
$ |
564.0 |
|
|
$ |
372.2 |
|
|
$ |
1,598.9 |
|
|
$ |
691.6 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
a) |
Non-recurring facility costs |
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
|
— |
|
|
|
3.2 |
|
b) |
Impact of business wind down |
|
16.3 |
|
|
|
— |
|
|
|
— |
|
|
|
16.3 |
|
|
|
— |
|
b) |
Amortization of acquisition-related intangible assets |
|
21.9 |
|
|
|
21.9 |
|
|
|
24.7 |
|
|
|
65.1 |
|
|
|
74.5 |
|
c) |
Restructuring, asset impairments and other, net |
|
40.3 |
|
|
|
(1.7 |
) |
|
|
(1.7 |
) |
|
|
25.6 |
|
|
|
58.3 |
|
d) |
Goodwill and intangible asset impairment |
|
271.8 |
|
|
|
115.0 |
|
|
|
— |
|
|
|
386.8 |
|
|
|
2.9 |
|
e) |
Third party acquisition and divestiture-related costs |
|
2.3 |
|
|
|
0.2 |
|
|
|
2.4 |
|
|
|
5.5 |
|
|
|
4.0 |
|
f) |
Loss on debt refinancing and prepayment |
|
— |
|
|
|
7.3 |
|
|
|
— |
|
|
|
7.3 |
|
|
|
26.2 |
|
g) |
Actuarial losses on pension plans and other pension benefits |
|
— |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
|
|
5.5 |
|
h) |
Non-cash interest on convertible notes |
|
— |
|
|
|
— |
|
|
|
7.0 |
|
|
|
— |
|
|
|
17.6 |
|
i) |
Gain on divestiture of business |
|
(0.2 |
) |
|
|
(1.9 |
) |
|
|
(10.2 |
) |
|
|
(2.1 |
) |
|
|
(10.2 |
) |
|
Total special items |
|
352.4 |
|
|
|
140.8 |
|
|
|
30.2 |
|
|
|
504.5 |
|
|
|
182.0 |
|
Non-GAAP income before income taxes |
$ |
759.2 |
|
|
$ |
704.8 |
|
|
$ |
402.4 |
|
|
$ |
2,103.4 |
|
|
$ |
873.6 |
|
|
Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation: |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP net income attributable to ON Semiconductor Corporation |
$ |
311.9 |
|
|
$ |
455.8 |
|
|
$ |
309.7 |
|
|
$ |
1,297.9 |
|
|
$ |
583.7 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Non-recurring facility costs |
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
|
— |
|
|
|
3.2 |
|
b) |
Impact of business wind down |
|
16.3 |
|
|
|
— |
|
|
|
— |
|
|
|
16.3 |
|
|
|
— |
|
b) |
Amortization of acquisition-related intangible assets |
|
21.9 |
|
|
|
21.9 |
|
|
|
24.7 |
|
|
|
65.1 |
|
|
|
74.5 |
|
c) |
Restructuring, asset impairments and other, net |
|
40.3 |
|
|
|
(1.7 |
) |
|
|
(1.7 |
) |
|
|
25.6 |
|
|
|
58.3 |
|
d) |
Goodwill and intangible asset impairment |
|
271.8 |
|
|
|
115.0 |
|
|
|
— |
|
|
|
386.8 |
|
|
|
2.9 |
|
e) |
Third party acquisition and divestiture-related costs |
|
2.3 |
|
|
|
0.2 |
|
|
|
2.4 |
|
|
|
5.5 |
|
|
|
4.0 |
|
f) |
Actuarial losses on pension plans and other pension benefits |
|
— |
|
|
|
— |
|
|
|
5.5 |
|
|
|
— |
|
|
|
5.5 |
|
f) |
Loss on debt refinancing and prepayment |
|
— |
|
|
|
7.3 |
|
|
|
— |
|
|
|
7.3 |
|
|
|
26.2 |
|
g) |
Non-cash interest on convertible notes |
|
— |
|
|
|
— |
|
|
|
7.0 |
|
|
|
— |
|
|
|
17.6 |
|
h) |
Gain on divestiture of a business |
|
(0.2 |
) |
|
|
(1.9 |
) |
|
|
(10.2 |
) |
|
|
(2.1 |
) |
|
|
(10.2 |
) |
i) |
Adjustment of income taxes |
|
(24.9 |
) |
|
|
(7.3 |
) |
|
|
40.4 |
|
|
|
(35.1 |
) |
|
|
41.7 |
|
|
Total special items |
|
327.5 |
|
|
|
133.5 |
|
|
|
70.6 |
|
|
|
469.4 |
|
|
|
223.7 |
|
Non-GAAP net income attributable to ON Semiconductor Corporation |
$ |
639.4 |
|
|
$ |
589.3 |
|
|
$ |
380.3 |
|
|
$ |
1,767.3 |
|
|
$ |
807.4 |
|
|
Adjustment of income taxes: |
|
|
|
|
|
|
|
|
|
|||||||||||
Tax adjustment for special items (1) |
$ |
(74.0 |
) |
|
$ |
(5.4 |
) |
|
$ |
(6.3 |
) |
|
$ |
(105.9 |
) |
|
$ |
(38.2 |
) |
|
Other non-GAAP tax adjustment (2) |
|
49.1 |
|
|
|
(1.9 |
) |
|
|
46.7 |
|
|
|
70.8 |
|
|
|
79.9 |
|
|
|
Total adjustment of income taxes |
$ |
(24.9 |
) |
|
$ |
(7.3 |
) |
|
$ |
40.4 |
|
|
$ |
(35.1 |
) |
|
$ |
41.7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income for diluted earnings per share |
$ |
312.4 |
|
|
$ |
456.3 |
|
|
$ |
309.7 |
|
|
$ |
1,299.4 |
|
|
$ |
583.7 |
|
|
Non-GAAP net income for diluted earnings per share |
$ |
639.9 |
|
|
$ |
589.8 |
|
|
$ |
380.3 |
|
|
$ |
1,768.8 |
|
|
$ |
807.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of GAAP to non-GAAP diluted shares outstanding: |
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP diluted shares outstanding |
|
448.7 |
|
|
|
447.0 |
|
|
|
440.7 |
|
|
|
448.3 |
|
|
|
443.1 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Less: dilutive shares attributable to convertible notes |
|
(7.9 |
) |
|
|
(5.4 |
) |
|
|
(5.0 |
) |
|
|
(6.7 |
) |
|
|
(8.9 |
) |
|
Total special items |
|
(7.9 |
) |
|
|
(5.4 |
) |
|
|
(5.0 |
) |
|
|
(6.7 |
) |
|
|
(8.9 |
) |
Non-GAAP diluted shares outstanding |
|
440.8 |
|
|
|
441.6 |
|
|
|
435.7 |
|
|
|
441.6 |
|
|
|
434.2 |
|
|
Non-GAAP diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Non-GAAP net income for diluted earnings per share |
$ |
639.9 |
|
|
$ |
589.8 |
|
|
$ |
380.3 |
|
|
$ |
1,768.8 |
|
|
$ |
807.4 |
|
|
Non-GAAP diluted shares outstanding |
|
440.8 |
|
|
|
441.6 |
|
|
|
435.7 |
|
|
|
441.6 |
|
|
|
434.2 |
|
|
Non-GAAP diluted earnings per share |
$ |
1.45 |
|
|
$ |
1.34 |
|
|
$ |
0.87 |
|
|
$ |
4.01 |
|
|
$ |
1.86 |
|
|
Reconciliation of net cash provided by operating activities to free cash flow: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by operating activities |
$ |
1,002.4 |
|
|
$ |
420.8 |
|
|
$ |
448.9 |
|
|
$ |
1,901.8 |
|
|
$ |
1,155.4 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
a) |
Purchase of property, plant and equipment |
|
(271.1 |
) |
|
|
(218.1 |
) |
|
|
(93.2 |
) |
|
|
(663.0 |
) |
|
|
(275.0 |
) |
|
Total special items |
|
(271.1 |
) |
|
|
(218.1 |
) |
|
|
(93.2 |
) |
|
|
(663.0 |
) |
|
|
(275.0 |
) |
Free cash flow |
$ |
731.3 |
|
|
$ |
202.7 |
|
|
$ |
355.7 |
|
|
$ |
1,238.8 |
|
|
$ |
880.4 |
|
ON SEMICONDUCTOR CORPORATION RECONCILIATION OF GAAP VERSUS NON-GAAP DISCLOSURES (Continued) (in millions, except per share and percentage data) |
|||||||||||||||||||
|
Quarters Ended |
|
|
||||||||||||||||
|
December 31,
|
|
April 1, 2022 |
|
July 1, 2022 |
|
September 30,
|
|
LTM |
||||||||||
Net cash provided by operating activities |
$ |
626.6 |
|
|
$ |
478.6 |
|
|
$ |
420.8 |
|
|
$ |
1,002.4 |
|
|
$ |
2,528.4 |
|
Purchase of property, plant and equipment |
|
(169.6 |
) |
|
|
(173.8 |
) |
|
|
(218.1 |
) |
|
|
(271.1 |
) |
|
|
(832.6 |
) |
Free cash flow |
$ |
457.0 |
|
|
$ |
304.8 |
|
|
$ |
202.7 |
|
|
$ |
731.3 |
|
|
$ |
1,695.8 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
$ |
1,846.1 |
|
|
$ |
1,945.0 |
|
|
$ |
2,085.0 |
|
|
$ |
2,192.6 |
|
|
$ |
8,068.7 |
|
(1) |
Tax impact of non-GAAP special items (a-h) is calculated using the federal statutory rate of 21% for all periods presented. |
|
(2) |
For the periods related to the year ended December 31, 2021, the income tax adjustment primarily represents the use of the net operating loss, non-cash impact of not asserting indefinite reinvestment on earnings of our foreign subsidiaries, deferred tax expense not affecting taxes payable, and non-cash expense (benefit) related to uncertain tax positions. For the periods related to the year ended December 31, 2022, the income tax adjustment primarily relates to discrete tax and other non-GAAP adjustments. |