Additional Information for the Fourth Quarter and full-year 2015:
- On December 7, 2015, NXP completed its merger with Freescale Semiconductor, Ltd. (“FSL Merger”). NXP’s fourth quarter 2015 results include the operating results of FSL from that date forward. As a result of the FSL Merger, NXP recognized a restructuring charge of $239 million. The charge is comprised of employee related severance accruals and contract termination costs. In addition, NXP recognized $49 million of stock based compensation charges related to employees terminated as a result of the FSL Merger.
- On November 7, 2015, in connection with the FSL Merger, NXP entered into a $2.7 billion secured term loan (“Term Loan B”). Proceeds from the issuance, together with cash-on-hand were used to (i) pay the cash consideration in connection with the FSL Merger, (ii) effect the repayment of any amounts under Freescale’s outstanding credit facility and (iii) pay certain transaction costs, in each case simultaneously with the issuance of the Term Loan.
- On December 7, 2015 NXP completed the divestiture of its RF Power business to Jianguang Asset Management Co. Ltd.
- On November 9, 2015, NXP and Jianguang Asset Management Co. Ltd. completed its previously announced creation of WeEn Semiconductors, a Bipolar Power joint venture (JV) in China following the clearance of regulators.
- During the fourth quarter of 2015, NXP repurchased approximately 1.8 million shares for a total cost of approximately $151 million. For the full-year of 2015, NXP repurchased approximately 5.3 million shares for a total cost of approximately $475 million.
- During the fourth quarter of 2015, SSMC, NXP’s consolidated joint-venture wafer fab with TSMC, reported fourth quarter 2015 operating income of $40 million, EBITDA of $56 million and a closing cash balance of $485 million. For the full-year 2015, SSMC reported operating income of $181 million, EBITDA of $241 million and a closing cash balance of $485 million.
- During the fourth quarter of 2015, utilization in the combined NXP wafer-fabs averaged 86 percent. For the full-year 2015 utilization in the combined NXP wafer-fabs averaged 94 percent.
Supplemental Information ($ millions, unaudited) (1, 2)
| Q4 2015 | Q3 2015 | Q4 2014 | % Q4 Total | Q - Q | Y - Y | 2015 | 2014 |
Y - Y
| |||||||||||||||||||||||||||||||||
| Automotive | $ | 422 | $ | 308 | $ | 292 | 26 | % | 37 | % | 45 | % | $ | 1,342 | $ | 1,144 | 17 | % | |||||||||||||||||||||||
| Secure Identificantion Solutions (SIS) | $ | 225 | $ | 269 | $ | 223 | 14 | % | -16 | % | 1 | % | $ | 973 | $ | 996 | -2 | % | |||||||||||||||||||||||
| Secure Connected Devices (SCD) | $ | 379 | $ | 317 | $ | 349 | 24 | % | 20 | % | 9 | % | $ | 1,261 | $ | 1,028 | 23 | % | |||||||||||||||||||||||
| Secure Interface & Infrastructure (SI&I) | $ | 280 | $ | 270 | $ | 305 | 17 | % | 4 | % | -8 | % | $ | 1,144 | $ | 1,040 | 10 | % | |||||||||||||||||||||||
| High Performance Mixed Signal (HPMS) | $ | 1,306 | $ | 1,164 | $ | 1,169 | 81 | % | 12 | % | 12 | % | $ | 4,720 | $ | 4,208 | 12 | % | |||||||||||||||||||||||
| Standard Products (STDP) | $ | 271 | $ | 325 | $ | 331 | 17 | % | -17 | % | -18 | % | $ | 1,241 | $ | 1,275 | -3 | % | |||||||||||||||||||||||
| Product Revenue | $ | 1,577 | $ | 1,489 | $ | 1,500 | 98 | % | 6 | % | 5 | % | $ | 5,961 | $ | 5,483 | 9 | % | |||||||||||||||||||||||
| Corporate & Other | $ | 29 | $ | 33 | $ | 37 | 2 | % | -12 | % | -22 | % | $ | 140 | $ | 164 | -15 | % | |||||||||||||||||||||||
| Total Revenue | $ | 1,606 | $ | 1,522 | $ | 1,537 | 100 | % | 6 | % | 4 | % | $ | 6,101 | $ | 5,647 | 8 | % | |||||||||||||||||||||||
