STMICROELECTRONICS N.V.
identify trends in the Company's business and perform related trend
analysis, and (iii) to facilitate a comparison of the Company's results
of operations against investor and analyst financial models and
valuations, which may exclude these items.
Net Financial Position (non-U.S. GAAP measure)
Net Financial Position, a non-U.S. GAAP measure, represents the
difference between our total liquidity and our total financial debt. Our
total liquidity includes cash and cash equivalents, marketable
securities, restricted cash and short-term deposits, and our total
financial debt includes short-term debt and long-term debt, as
represented in our Consolidated Balance Sheets.
We believe our Net Financial Position provides useful information for
investors and management because it gives evidence of our global
position either in terms of net indebtedness or net cash by measuring
our capital resources based on cash and cash equivalents, restricted
cash, short-term deposits and marketable securities and the total level
of our financial indebtedness. Our definition of Net Financial Position
may differ from definitions used by other companies and therefore
comparability may be limited.
Dec 31 Sep 26 Jun 27 Mar 28 Dec 31
(US$ m) 2020 2020 2020 2020 2019
--------------------- --------- ---------- ---------- --------- ---------
Cash and cash
equivalents 3,006 2,714 1,800 2,028 2,597
--------------------- --------- ---------- ---------- --------- ---------
Restricted cash - - - 10 10
--------------------- --------- ---------- ---------- --------- ---------
Short term deposits 581 679 687 537 4
--------------------- --------- ---------- ---------- --------- ---------
Marketable
securities 133 134 134 135 133
--------------------- --------- ---------- ---------- --------- ---------
Total liquidity 3,720 3,527 2,621 2,710 2,744
--------------------- --------- ---------- ---------- --------- ---------
Short-term debt (795) (983)(2) (879)(1) (171) (173)
--------------------- --------- ---------- ---------- --------- ---------
Long-term debt(3) (1,826) (1,882) (1,172) (1,871) (1,899)
--------------------- --------- ---------- ---------- --------- ---------
Total financial
debt (2,621) (2,865) (2,051) (2,042) (2,072)
--------------------- --------- ---------- ---------- --------- ---------
Net Financial
Position 1,099 662 570 668 672
--------------------- --------- ---------- ---------- --------- ---------
(1) 2022 Tranche A of the convertible bond issued in 2017 was
reclassified to short-term debt in line with contractual terms.
(2) 2024 Tranche B of the convertible bond issued in 2017 was
reclassified to short-term debt in line with contractual terms.
(3) Long-term debt contains standard conditions but does not impose
minimum financial ratios. Also, committed credit facilities for $1.2
billion equivalent, including a EUR500 million long-term line with the
European Investment Bank, are currently undrawn.
(Appendix -- continued)
STMicroelectronics
Free Cash Flow (non-U.S. GAAP measure)
Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net
cash from operating activities plus (ii) net cash used in investing
activities, excluding payment for purchases of (and proceeds from
matured) marketable securities and net investment in short-term deposits,
which are considered as temporary financial investments. The result of
this definition is ultimately net cash from operating activities plus
payment for purchase and proceeds from sale of tangible, intangible and
financial assets and cash paid for business acquisitions.
We believe Free Cash Flow provides useful information for investors and
management because it measures our capacity to generate cash from our
operating and investing activities to sustain our operations. Free Cash
Flow does not represent total cash flow since it does not include the
cash flows generated by or used in financing activities.
Free Cash Flow reconciles with the total cash flow and the net cash
increase (decrease) by including the payment for purchases of (and
proceeds from matured) marketable securities and net investment in
short-term deposits, the net cash from (used in) financing activities
and the effect of changes in exchange rates. Our definition of Free Cash
Flow may differ from definitions used by other companies.
Q4 Q3 Q2 Q1 Q4
(US$ m) 2020 2020 2020 2020 2019 FY 2020 FY 2019
---------------------------------------------------------- ------- ------- ------- ------- ------- --------- ---------
Net cash from operating activities 922 385 387 399 775 2,093 1,869
---------------------------------------------------------- ------- ------- ------- ------- ------- --------- ---------
Net cash used in investing activities (312) (400) (509) (821) (314) (2,043) (1,172)
---------------------------------------------------------- ------- ------- ------- ------- ------- --------- ---------
Payment for purchase of (and proceeds from matured)
marketable securities and net investment in short-term
deposits (98) (10) 150 535 - 577 (200)
---------------------------------------------------------- ------- ------- ------- ------- ------- --------- ---------
Free cash flow 512 (25) 28 113 461 627 497
---------------------------------------------------------- ------- ------- ------- ------- ------- --------- ---------
Attachment
-- C2981C - Q4 & FY2020
https://ml-eu.globenewswire.com/Resource/Download/f1026b72-017d-4e64-a991-eb66ea077c7c(END) Dow Jones Newswires
January 28, 2021 01:00 ET (06:00 GMT)
