ON SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
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UNAUDITED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA* AND |
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NET CASH PROVIDED BY OPERATING ACTIVITIES |
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(in millions) |
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Quarter Ended | Six Months Ended | ||||||||||||||||||
July 3, 2015 | April 3, 2015 |
July 27, 2014 (1) |
July 3, 2015 |
June 27, 2014 (1) |
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Net income | $ | 51.4 | $ | 55.8 | $ | 95.1 | $ | 107.2 | $ | 151.0 | |||||||||
Adjusted for: | |||||||||||||||||||
Restructuring, asset impairments and other, net | 3.5 | (2.3 | ) | 4.1 | 1.2 | 9.9 | |||||||||||||
Goodwill and intangible asset impairment | 3.7 | — | — | 3.7 | — | ||||||||||||||
Interest expense | 10.7 | 9.2 | 7.9 | 19.9 | 16.0 | ||||||||||||||
Interest income | (0.3 | ) | (0.3 | ) | (0.2 | ) | (0.6 | ) | (0.4 | ) | |||||||||
Loss on debt extinguishment | 0.4 | — | — | 0.4 | — | ||||||||||||||
Gain on sale of available-for-sale securities | (1.3 | ) | (3.4 | ) | — | (4.7 | ) | — | |||||||||||
Income tax provision (benefit) | 7.7 | 7.4 | (16.2 | ) | 15.1 | (10.0 | ) | ||||||||||||
Net income attributable to non-controlling interest | (0.7 | ) | (0.7 | ) | (1.0 | ) | (1.4 | ) | (1.2 | ) | |||||||||
Depreciation and amortization | 88.4 | 90.2 | 57.9 | 178.6 | 110.3 | ||||||||||||||
Expensing of appraised inventory at fair market value | — | — | 1.3 | — | 1.3 | ||||||||||||||
Third party acquisition related costs | — | — | 3.7 | — | 4.0 | ||||||||||||||
Adjusted EBITDA* | 163.5 | 155.9 | 152.6 | 319.4 | 280.9 | ||||||||||||||
Increase (decrease): | |||||||||||||||||||
Restructuring, asset impairments and other, net | (3.5 | ) | 2.3 | (4.1 | ) | (1.2 | ) | (9.9 | ) | ||||||||||
Interest expense | (10.7 | ) | (9.2 | ) | (7.9 | ) | (19.9 | ) | (16.0 | ) | |||||||||
Interest income | 0.3 | 0.3 | 0.2 | 0.6 | 0.4 | ||||||||||||||
Gain on sale of available-for-sale securities | 1.3 | 3.4 | — | 4.7 | — | ||||||||||||||
Income tax provision | (7.7 | ) | (7.4 | ) | 16.2 | (15.1 | ) | 10.0 | |||||||||||
Net income attributable to non-controlling interest | 0.7 | 0.7 | 1.0 | 1.4 | 1.2 | ||||||||||||||
Expensing of appraised inventory at fair market value | — | — | (1.3 | ) | — | (1.3 | ) | ||||||||||||
Third party acquisition related costs | — | — | (3.7 | ) | — | (4.0 | ) | ||||||||||||
Gain on sale or disposal of fixed assets | (0.5 | ) | (4.0 | ) | — | (4.5 | ) | (0.3 | ) | ||||||||||
Amortization of debt issuance costs | 0.6 | 0.3 | 0.4 | 0.9 | 0.7 | ||||||||||||||
Write-down of excess inventories | 10.5 | 17.7 | 4.7 | 28.2 | 11.5 | ||||||||||||||
Non-cash asset impairment charges | 0.2 | — | 1.8 | 0.2 | 1.8 | ||||||||||||||
Non-cash share-based compensation expense | 14.1 | 11.3 | 13.4 | 25.4 | 21.9 | ||||||||||||||
Non-cash interest | 3.0 | 1.8 | 1.7 | 4.8 | 3.3 | ||||||||||||||
Change in deferred taxes | — | (0.4 | ) | (21.5 | ) | (0.4 | ) | (19.6 | ) | ||||||||||
Other | (2.1 | ) | (3.0 | ) | (0.1 | ) | (5.1 | ) | (0.1 | ) | |||||||||
Changes in operating assets and liabilities | (68.1 | ) | (86.2 | ) | (1.8 | ) | (154.3 | ) | (54.0 | ) | |||||||||
Net cash provided by operating activities | $ | 101.6 | $ | 83.5 | $ | 151.6 | $ | 185.1 | $ | 226.5 |