Fairchild Reports Results for the Second Quarter of 2016



Fairchild Semiconductor International, Inc.
Reconciliation of Gross Margin To Adjusted Gross Margin
(In millions)
(Unaudited)

	Three Months Ended									Six Months Ended
	June 26,			March 27,			June 28,			June 26,			June 28,
	2016			2016			2015			2016			2015

Gross margin	$	103.1		$	100.1		$	109.8		$	203.2		$	217.8
Adjustments to reconcile gross margin to adjusted gross margin:
Accelerated depreciation on assets related to factory closures	—			—			3.5			—			8.0
Inventory write-offs associated with factory closures	—			—			4.6			—			4.6
Acquisition-related costs	1.7			1.5			—			3.2			—
Adjusted gross margin	$	104.8		$	101.6		$	117.9		$	206.4		$	230.4

Adjusted gross margin %	29.9		%	31.1		%	33.2		%	30.5		%	32.4		%



Fairchild Semiconductor International, Inc.
Consolidated Balance Sheets
(In millions)
(Unaudited)

	June 26,		March 27,		December 27,
	2016		2016		2015

ASSETS
Current assets:
Cash and cash equivalents	$	329.0	$	272.0	$	279.4
Short-term marketable securities	0.1		0.1		0.2
Receivables, net	149.2		152.1		132.6
Inventories	273.2		284.0		304.2
Other current assets	38.8		36.2		50.5
Total current assets	790.3		744.4		766.9

Property, plant and equipment, net	525.5		537.1		550.4
Intangible assets, net	24.0		25.8		27.5
Goodwill	205.9		205.3		204.5
Long-term securities	2.0		1.9		2.0
Other assets	36.9		35.1		34.6
Total assets	$	1,584.6	$	1,549.6	$	1,585.9

LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	99.3	$	93.3	$	110.6
Accrued expenses and other current liabilities	93.1		79.9		115.6
Total current liabilities	192.4		173.2		226.2

Long-term debt	198.9		198.7		198.4
Other liabilities	60.8		59.9		58.8
Total liabilities	452.1		431.8		483.4

Temporary equity - deferred stock units	4.6		6.4		6.3
Total stockholders' equity	1,127.9		1,111.4		1,096.2
Total liabilities, temporary equity and stockholders' equity	$	1,584.6	$	1,549.6	$	1,585.9