| NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION | ||
| Summary of Key Reconciling Items | ||
| (a) | Reflects the effects of acquisition accounting and the related amortization expense for developed technology, trademarks/tradenames and customer relationships along with inventory step-up recognition, as applicable. | |
| (b) | Reflects non-cash, share-based compensation expense under the provisions of ASC Topic 718, "Compensation - Stock Compensation.” | |
| (c) | Reflects items related to our reorganization of business programs, expenses associated with our proposed merger with NXP and other items. | |
| (d) | Adjustments to reflect cash income tax expense. | |
| (e) | Reflects losses on extinguishments and modifications of our long-term debt. | |
| (f) | Reflects adjustments required by our debt instruments, including business optimization expenses, relocation expenses and other items. | |
| (g) | Reflects non-cash income tax benefit resulting when compensation cost from non-qualified share-based compensation recognized on the entity's tax return exceeds cost from equity-based compensation recognized in the financial statements. | |
Note 1
Adjusted operating earnings represents operating earnings adjusted for
the following, as necessary: the impact of acquisition accounting,
non-cash share-based compensation expense and reorganization of
business, merger expenses and other items. Adjusted operating earnings
is not a recognized term under U.S. GAAP. Adjusted operating earnings
does not represent operating earnings, as that term is defined under
U.S. GAAP, and should not be considered an alternative to operating
earnings as an indicator of our operating performance. We have included
information concerning adjusted operating earnings because we use such
information to better evaluate the underlying performance of the
Company. Adjusted operating earnings as presented herein is not
necessarily comparable to similarly titled measures. A reconciliation of
adjusted operating earnings to operating earnings, the most directly
comparable U.S. GAAP measure, has been included in the preceding tables.
