Supplemental Non-U.S. GAAP Financial Information
U.S. GAAP – Non-U.S. GAAP Reconciliation
The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.
ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST’s U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST’s on-going operating results, (ii) the ability to better identify trends in ST’s business and perform related trend analysis, and (iii) to facilitate a comparison of ST’s results of operations against investor and analyst financial models and valuations, which may exclude these items.
Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures)
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, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. Starting Q4 2023, ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet. Reporting periods prior to Q4 2023 are not impacted.
ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give 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, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited.
| (US$ m) | June 29 2024 | Mar 30 2024 | Dec 31 2023 | Sep 30 2023 | July 1 2023 |
| Cash and cash equivalents | 3,092 | 3,133 | 3,222 | 3,011 | 3,111 |
| Short term deposits | 975 | 1,226 | 1,226 | 506 | 106 |
| Marketable securities | 2,218 | 1,880 | 1,635 | 1,537 | 1,346 |
| Total liquidity | 6,285 | 6,239 | 6,083 | 5,054 | 4,563 |
| Short-term debt | (236) | (238) | (217) | (173) | (176) |
| Long-term debt (a) | (2,850) | (2,875) | (2,710) | (2,418) | (2,473) |
| Total financial debt | (3,086) | (3,113) | (2,927) | (2,591) | (2,649) |
| Net Financial Position | 3,199 | 3,126 | 3,156 | 2,463 | 1,914 |
| Advances from capital grants | (402) | (351) | (152) | - | - |
| Adjusted Net Financial Position | 2,797 | 2,775 | 3,004 | 2,463 | 1,914 |
