(Attachment A - continued)
Net financial position: resources (debt), represents the balance between our total financial resources and our total financial debt. Our total financial resources include cash and cash equivalents, marketable securities, short-term deposits and restricted cash, and our total financial debt includes short-term borrowings, current portion of long-term debt and long-term debt, all as reported in our consolidated balance sheet. We believe our net financial position provides useful information for investors because it gives evidence of our global position either in terms of net indebtedness or net cash position by measuring our capital resources based on cash, cash equivalents and marketable securities and the total level of our financial indebtedness. Net financial position is not a U.S. GAAP measure.
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Net Financial Position (in US$ June 29, March 30, December 31,
millions) 2013 2013 2012
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Cash and cash equivalents 1,583 1,718 2,250
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Marketable securities 189 187 238
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Short-term deposits 1 1 1
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Non-current restricted cash - 4 4
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Total financial resources 1,773 1,910 2,493
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Short-term borrowings and current
portion of long-term debt (313) (250) (630)
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Long-term debt (651) (647) (671)
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Total financial debt (964) (897) (1,301)
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Net financial position 809 1,013 1,192
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Net financial position, adjusted to
account for 50%investment in ST- 954 1,096 1,192
Ericsson
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Free cash flow is defined as net cash from operating activities minus net cash from (used in) investing activities, excluding purchase of and proceeds from the sale of marketable securities, short term deposits and release of restricted cash. We believe free cash flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operating activities. Free cash flow is not a U.S. GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of free cash flow may differ from definitions used by other companies.
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Free cash flow (in US$ millions) Q2 2013 Q1 2013 Q2 2012
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Net cash from (used in) operating
activities 15 66 (37)
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Net cash from (used in) investing
activities (146) (81) (199)
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Payment for purchases of (proceeds from
sale of) marketable securities, short term (3) (50) 107
deposits and restricted cash, net
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Free cash flow (134) (65) (129)
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