Additional Information for the Third Quarter 2016:

• In recent months the U.S. Securities and Exchange Commission (“SEC”) has increased its focus on the general use of non-GAAP financial metrics and reporting by U.S. listed companies.  In May 2016, the SEC issued new and revised Compliance & Disclosure Interpretations that relate to the reporting of non-GAAP financial measures by all U.S. listed companies ( www.sec.gov/divisions/corpfin/guidance/nongaapinterp.htm).  As a result, NXP has re-evaluated its use of non-GAAP financial information, to ensure that when used in conjunction with its reported GAAP results, its non-GAAP financial information provides a clear reflection of the underlying operational performance of NXP.  Starting for the third quarter of 2016, NXP will limit its forward guidance to the following GAAP financial information; Revenue, Gross Profit, Operating Income, Financial Income and Expense, Non-Controlling Interest and Net Cash Paid for Income Taxes. In addition, NXP will limit the non-GAAP financial measures in its forward guidance and subsequent results to non-GAAP Gross Profit, non-GAAP Operating Income, and non-GAAP Financial Income and Expense.
• On September 22, 2016 NXP refinanced its $1,440 million Term Loan F, due 2020 to a rate of Libor + 2.50%, without a floor from Libor + 3.00% with a 75 basis-point floor. The principle amount did not change.
• On August 11, 2016 NXP issued a $1,000 million aggregate principle amount of 3.875% senior unsecured notes due 2022. NXP used the proceeds from the offering, together with cash on hand to redeem the remaining $960 million aggregate principle amount of outstanding senior secured notes due 2022, and to pay certain related financing costs.
• On August 1, 2016, NXP issued a $500 million aggregate principle amount of 4.125% senior unsecured notes, as a tap issue to its existing 2021 senior notes. NXP used the proceeds from the offering to redeem the remaining $200 million aggregate principle amount of outstanding senior secured notes due 2016, and used the remainder of the proceeds for general corporate purposes. 
• On August 8, 2016, NXP acquired certain mobile transaction assets and design engineers to complement our existing efforts. With this transaction, NXP reinforces its capabilities with a skilled engineering team focused on mobile applications.
• In the third quarter of 2016, SSMC, NXP’s consolidated joint-venture wafer fab with TSMC, reported third quarter 2016 operating income of $41 million, EBITDA of $55 million and a closing cash balance of $275 million. During the quarter SSMC paid a previously announced dividend of $325 million.
• In third quarter of 2016, utilization in the combined NXP wafer-fabs averaged 93 percent.
• During the third quarter of 2016, NXP repurchased approximately 6.5 million shares for a total cost of approximately $555 million.  Weighted average number of diluted shares (after deduction of treasury shares) for the three month period ended October 2, 2016 was 344.4 million.
• In the third quarter of 2016 net cash paid for interest was $57 million and net cash paid for income taxes was $19 million.

Supplemental Information ($ millions, unaudited) ^{(1, 2, 3, 4)}