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8-K - FORM 8-K - Avago Technologies LTD | f59300e8vk.htm |
Exhibit 99.1
Avago Technologies Limited Announces Second Quarter
Fiscal Year 2011 Financial Results
Fiscal Year 2011 Financial Results
| Net revenue up 2 percent sequentially to $560 million, up 9 percent from the same quarter last year | ||
| GAAP gross margin of 49.1 percent; Non-GAAP gross margin of 51.8 percent | ||
| GAAP net income of $135 million increased 50 percent from the same quarter last year; | ||
Non-GAAP net income of $165 million is up 41 percent from the same quarter last year |
SAN JOSE, Calif., and SINGAPORE May 24, 2011 Avago Technologies Limited (Nasdaq: AVGO),
a leading supplier of analog interface components for communications, industrial and consumer
applications, today reported financial results for the second quarter of its fiscal year 2011,
ended May 1, 2011, and provided guidance for the third quarter of its fiscal year 2011.
Second Quarter Fiscal Year 2011 GAAP Results
Net revenue was $560 million, an increase of 2 percent compared with the previous quarter, and up 9
percent from the same quarter last year.
Gross margin was $275 million, or 49.1 percent of net revenue. This compares with gross margin of
$271 million, or 49.3 percent of net revenue last quarter, and gross margin of $233 million, or
45.2 percent of net revenue in the same quarter last year.
Operating expenses were $137 million. This compares with $129 million in the prior quarter and
$125 million in the same quarter the previous year.
Income from operations was $138 million. This compares with $142 million in the prior quarter and
$108 million in the same quarter last year.
Second quarter net income was $135 million, or $0.54 per diluted share. This compares with net
income of $119 million, or $0.48 per diluted share last quarter, and net income of $90 million,
or $0.37 per diluted share in the same quarter last year.
The Companys cash and cash equivalents balance at the end of the second quarter was $596 million,
compared to $363 million at the end of the prior quarter. The increase over the previous quarter
is primarily due to cash provided by operating activities of $251 million.
In addition, on March 30, 2011 the Company paid an interim cash dividend of 8 cents ($0.08) per
ordinary share, totaling approximately $20 million.
Second Quarter Fiscal Year 2011 Non-GAAP Results
Gross margin was $290 million, or 51.8 percent of net revenue. This compares with gross margin of
$286 million, or 52.0 percent of net revenue last quarter, and gross margin of $248 million, or
48.2 percent of net revenue in the same quarter last year.
Income from operations was $167 million. This compares with $169 million in the prior quarter and
$135 million in the same quarter the previous year.
Avago Technologies Limited Announces Second Quarter Fiscal Year 2011 Financial Results
Net income was $165 million, or $0.64 per diluted share. This compares with net income of $165
million, or $0.65 per diluted share last quarter, and net income of $117 million, or $0.47 per
diluted share in the same quarter last year.
Second Quarter Fiscal Year 2011 Non-GAAP Results | Change | |||||||||||||||||||
(Dollars in millions, except EPS) | Q2 11 | Q1 11 | Q2 10 | Q/Q | Y/Y | |||||||||||||||
Net Revenue |
$ | 560 | $ | 550 | $ | 515 | +2 | % | +9 | % | ||||||||||
Gross Margin |
51.8 | % | 52.0 | % | 48.2 | % | -20bps | +360bps | ||||||||||||
Operating Expenses |
$ | 123 | $ | 117 | $ | 113 | +$6 | +$10 | ||||||||||||
Net Income |
$ | 165 | $ | 165 | $ | 117 | | + $48 | ||||||||||||
Earnings Per Share Diluted |
$ | 0.64 | $ | 0.65 | $ | 0.47 | -$0.01 | +$0.17 |
During the first half of fiscal 2011, we worked through the excess inventory in the supply chain
that we saw coming into the year, said Hock Tan, President and CEO of Avago Technologies Limited.
We believe the business is poised for strong seasonal growth for the second half of fiscal 2011,
led by strength in our wireless communications target market.
Other Quarterly Data
Percentage of Net Revenue | Growth Rates | |||||||||||||||||||
Net Revenues by Target Market | Q2 11 | Q1 11 | Q2 10 | Q/Q | Y/Y | |||||||||||||||
Wireless Communications |
36 | 37 | 38 | | 3 | % | ||||||||||||||
Wired Infrastructure |
29 | 28 | 24 | 5 | % | 30 | % | |||||||||||||
Industrial & Automotive |
30 | 30 | 29 | 1 | % | 14 | % | |||||||||||||
Consumer & Computing Peripherals |
5 | 5 | 9 | 3 | % | -38 | % |
Key Statistics | Q2 11 | Q1 11 | Q2 10 | |||||||||
(Dollars in millions) | ||||||||||||
Cash From Operations |
$ | 251 | $ | 67 | $ | 115 | ||||||
Depreciation |
$ | 19 | $ | 21 | $ | 20 | ||||||
Amortization |
$ | 19 | $ | 20 | $ | 20 | ||||||
Capital Expenditures |
$ | 19 | $ | 32 | $ | 18 | ||||||
Days Sales Outstanding |
47 | 48 | 44 | |||||||||
Inventory Days On Hand |
65 | 70 | 60 |
2
Avago Technologies Limited Announces Second Quarter Fiscal Year 2011 Financial Results
Third Quarter Fiscal Year 2011 Business Outlook
Based on current business trends, the outlook for the third fiscal quarter of 2011, ending July 31,
2011, is expected to be as follows:
GAAP | Reconciling Items | Non-GAAP | ||||
Net Revenue
|
Up 5% to 8% | Up 5% to 8% | ||||
Gross Margin
|
49.25% plus/minus 75bps | $15M | 51.75% plus/minus 75bps | |||
Operating Expenses
|
$151M | $19M | $132M | |||
Interest and Other
|
$0M | $0M | ||||
Taxes
|
$4M | $4M | ||||
Diluted Share Count
|
253M | 258M |
Reconciling items include $14 million of amortization of acquisition-related intangibles and
$1 million of share-based compensation expense at the Gross Margin line and $5 million of
amortization of acquisition-related intangibles, $11 million of share-based compensation and $3
million of restructuring charges at the Operating Expenses line.
The guidance provided above is only an estimate of what the Company believes is realizable as of
the date of this release. Actual results will vary from the guidance and the variations may be
material. The Company undertakes no intent or obligation to publicly update or revise any of these
projections, whether as a result of new information, future events or otherwise, except as required
by law.
Avago will be presenting at the Barclays Capital Global Communications, Media and Technology Conference in
New York on May 25 and at the Sterne Agee Technology Conference also in New York on May
26. Both of these presentations will be webcast and available for replay on the Investors
section of Avagos website at www.avagotech.com.
Financial Results Conference Call
Avago Technologies Limited will host a conference call to review its financial results for the
second quarter of fiscal year 2011, and to provide guidance for the third quarter of fiscal year
2011, today at 2:00 p.m. Pacific Time. Those wishing to access the call should dial 800-295-4740;
International 617-614-3925. The passcode is 64003788. A replay of the call will be available
through May 31, 2011. To access the replay dial 888-286-8010; International 617-801-6888 and
reference the passcode: 48965422. A webcast of the conference call will also be available in the
Investors section of Avagos website.
Non-GAAP Financial Measures
In addition to GAAP reporting, Avago provides investors with net income or loss, as well as gross
margin and operating expenses, on a non-GAAP basis. This non-GAAP information excludes
amortization of acquisition-related intangibles, share-based compensation expense, restructuring
charges and debt extinguishment losses. Management does not believe that the excluded items are
reflective of the Companys underlying performance. The exclusion of these and other similar items
from Avagos non-GAAP presentation should not be interpreted as implying that these items are
non-recurring, infrequent or unusual. Avago believes this non-GAAP financial information provides
additional insight
into the Companys on-going performance and has therefore chosen to provide this information to
investors for a more consistent basis of comparison and to help them evaluate the results of the
Companys on-going operations and enable more meaningful period to period comparisons. These
non-
3
Avago Technologies Limited Announces Second Quarter Fiscal Year 2011 Financial Results
GAAP measures are in addition to, and not a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP
financial data is included in the supplemental financial data attached to this press release.
About Avago Technologies Limited
Avago Technologies Limited is a leading designer, developer and global supplier of a broad range of
analog semiconductor devices with a focus on III-V based products. Our product portfolio is
extensive and includes over 6,500 products in four primary target markets: wireless
communications, wired infrastructure, industrial and automotive electronics and consumer and
computing peripherals.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements which address our expected future business
and financial performance. All statements other than statements of historical fact could be deemed
forward-looking, including, but not limited to, any statements of the plans, strategies and
objectives of management for future operations; any statements of expectation or belief regarding
future events, our products, product sales, expenses, liquidity, cash flow and growth rates;
technology developments or enforceability of our intellectual property rights and related
litigation expenses; and any statements of assumptions underlying any of the foregoing. These
forward-looking statements are based on current expectations, estimates, forecasts and projections
of future Company or industry performance, based on managements judgment, beliefs, current trends
and market conditions, and involve risks and uncertainties that may cause actual results to differ
materially from those contained in the forward-looking statements. Accordingly, we caution you not
to place undue reliance on these statements. For Avago, particular uncertainties that could
materially affect future results include cyclicality in the semiconductor industry or in our target
markets and general economic conditions; quarterly and annual fluctuations in operating results;
our competitive performance and ability to continue achieving design wins with our customers; our
ability to generate cash sufficient to fund our research and development, capital expenditures and
other business needs; our increased dependence on outsourced service providers for certain key
business services and their ability to execute to our requirements; our dependence on contract
manufacturing and outsourced supply chain; loss of our significant customers; our ability to
maintain tax concessions in certain jurisdictions; our ability to protect our intellectual property
and any associated increases in litigation expenses; any expenses associated with resolving
customer product and warranty and indemnification claims; costs associated with and our ability to
achieve the growth prospects and synergies expected from our acquisitions; delays and challenges
associated with integrating acquired companies with our existing businesses; our ability to improve
our cost structure through our manufacturing outsourcing program; and other events and trends on a
national, regional and global scale, including those of a political, economic, business,
competitive and regulatory nature. Our Quarterly Report on Form 10-Q filed on March 10, 2011 and
other filings with the Securities and Exchange Commission, or SEC (which you may obtain for free
at the SECs website at http://www.sec.gov) discuss some of the important risk factors that may
affect our business, results of operations and financial condition. We undertake no intent or
obligation to publicly update or revise any of these forward looking statements, whether as a
result of new information, future events or otherwise, except as required by law.
# # #
4
Avago Technologies Limited Announces Second Quarter Fiscal Year 2011 Financial Results
Contacts:
Avago Technologies Ltd.
Jacob Sayer, 408-435-7400
VP Business Development and Investor Relations
investor.relations@avagotech.com
Jacob Sayer, 408-435-7400
VP Business Development and Investor Relations
investor.relations@avagotech.com
5
AVAGO TECHNOLOGIES LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED
(IN MILLIONS, EXCEPT PER SHARE DATA)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED
(IN MILLIONS, EXCEPT PER SHARE DATA)
Quarter ended | Two quarters ended | |||||||||||||||||||
May 1, | January 30, | May 2, | May 1, | May 2, | ||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Net revenue |
$ | 560 | $ | 550 | $ | 515 | $ | 1,110 | $ | 971 | ||||||||||
Cost of products
sold: |
||||||||||||||||||||
Cost of products
sold |
271 | 265 | 268 | 536 | 515 | |||||||||||||||
Amortization of
intangible assets |
14 | 14 | 14 | 28 | 29 | |||||||||||||||
Total cost of
products sold |
285 | 279 | 282 | 564 | 544 | |||||||||||||||
Gross margin |
275 | 271 | 233 | 546 | 427 | |||||||||||||||
Research and
development |
76 | 73 | 70 | 149 | 134 | |||||||||||||||
Selling, general
and administrative |
55 | 50 | 48 | 105 | 94 | |||||||||||||||
Amortization of
intangible assets |
5 | 6 | 6 | 11 | 11 | |||||||||||||||
Restructuring
charges |
1 | | 1 | 1 | 2 | |||||||||||||||
Total operating
expenses |
137 | 129 | 125 | 266 | 241 | |||||||||||||||
Income from
operations |
138 | 142 | 108 | 280 | 186 | |||||||||||||||
Interest expense |
(1 | ) | (3 | ) | (8 | ) | (4 | ) | (19 | ) | ||||||||||
Loss on
extinguishment of
debt |
(1 | ) | (19 | ) | | (20 | ) | (24 | ) | |||||||||||
Other income
(expense), net |
1 | | (1 | ) | 1 | (2 | ) | |||||||||||||
Income before
income taxes |
137 | 120 | 99 | 257 | 141 | |||||||||||||||
Provision for
income taxes |
2 | 1 | 9 | 3 | 13 | |||||||||||||||
Net income |
$ | 135 | $ | 119 | $ | 90 | $ | 254 | $ | 128 | ||||||||||
Net income per
share: |
||||||||||||||||||||
Basic |
$ | 0.55 | $ | 0.49 | $ | 0.38 | $ | 1.04 | $ | 0.54 | ||||||||||
Diluted |
$ | 0.54 | $ | 0.48 | $ | 0.37 | $ | 1.01 | $ | 0.52 | ||||||||||
Shares used in per
share calculations: |
||||||||||||||||||||
Basic |
245 | 242 | 238 | 245 | 237 | |||||||||||||||
Diluted |
252 | 250 | 246 | 252 | 244 | |||||||||||||||
Share-based
compensation
included in: |
||||||||||||||||||||
Cost of products
sold |
$ | 1 | $ | 1 | $ | 1 | $ | 2 | $ | 1 | ||||||||||
Research and
development |
3 | 3 | 2 | 6 | 3 | |||||||||||||||
Selling, general
and administrative |
5 | 3 | 3 | 8 | 7 | |||||||||||||||
$ | 9 | $ | 7 | $ | 6 | $ | 16 | $ | 11 | |||||||||||
AVAGO TECHNOLOGIES LIMITED
NON-GAAP FINANCIAL SUMMARY UNAUDITED(1)
(IN MILLIONS, EXCEPT PERCENTAGES AND PER SHARE DATA)
NON-GAAP FINANCIAL SUMMARY UNAUDITED(1)
(IN MILLIONS, EXCEPT PERCENTAGES AND PER SHARE DATA)
Quarter ended | Two quarters ended | |||||||||||||||||||
May 1, | January 30, | May 2, | May 1, | May 2, | ||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Net revenue |
$ | 560 | $ | 550 | $ | 515 | $ | 1,110 | $ | 971 | ||||||||||
Gross margin |
290 | 286 | 248 | 576 | 457 | |||||||||||||||
% of net revenue |
52 | % | 52 | % | 48 | % | 52 | % | 47 | % | ||||||||||
Research and development |
$ | 73 | $ | 70 | $ | 68 | 143 | $ | 131 | |||||||||||
Selling, general and administrative |
$ | 50 | $ | 47 | $ | 45 | 97 | $ | 87 | |||||||||||
Total operating expenses |
$ | 123 | $ | 117 | $ | 113 | $ | 240 | $ | 218 | ||||||||||
% of net revenue |
22 | % | 21 | % | 22 | % | 22 | % | 22 | % | ||||||||||
Income from operations |
$ | 167 | $ | 169 | $ | 135 | $ | 336 | $ | 239 | ||||||||||
Interest expense |
$ | (1 | ) | $ | (3 | ) | $ | (8 | ) | (4 | ) | $ | (19 | ) | ||||||
Net income |
$ | 165 | $ | 165 | $ | 117 | $ | 330 | $ | 205 | ||||||||||
Net income per share diluted |
$ | 0.64 | $ | 0.65 | $ | 0.47 | $ | 1.28 | $ | 0.83 | ||||||||||
Shares used in per share
calculation diluted |
258 | 254 | 249 | 258 | 247 |
(1) | A reconciliation of the non-GAAP measures presented above to GAAP financial data appears on the next page. These non-GAAP measures are provided in addition to and not as a substitute for measures of financial performance prepared in accordance with GAAP. The financial summary excludes amortization of intangible assets, share-based compensation, restructuring charges, and loss on extinguishment of debt. |
AVAGO TECHNOLOGIES LIMITED
FINANCIAL RECONCILIATION: GAAP TO NON-GAAP UNAUDITED
(IN MILLIONS)
FINANCIAL RECONCILIATION: GAAP TO NON-GAAP UNAUDITED
(IN MILLIONS)
Quarter ended | Two quarters ended | |||||||||||||||||||
May 1, | January 30, | May 2, | May 1, | May 2, | ||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Net income on GAAP basis |
$ | 135 | $ | 119 | $ | 90 | $ | 254 | $ | 128 | ||||||||||
Amortization of intangible assets |
19 | 20 | 20 | 39 | 40 | |||||||||||||||
Share-based compensation expense |
9 | 7 | 6 | 16 | 11 | |||||||||||||||
Restructuring charges |
1 | | 1 | 1 | 2 | |||||||||||||||
Loss on extinguishment of debt |
1 | 19 | | 20 | 24 | |||||||||||||||
Net income on Non-GAAP basis |
$ | 165 | $ | 165 | $ | 117 | $ | 330 | $ | 205 | ||||||||||
Gross margin on GAAP basis |
$ | 275 | $ | 271 | $ | 233 | $ | 546 | $ | 427 | ||||||||||
Amortization of intangible assets |
14 | 14 | 14 | 28 | 29 | |||||||||||||||
Share-based compensation expense |
1 | 1 | 1 | 2 | 1 | |||||||||||||||
Gross margin on Non-GAAP basis |
$ | 290 | $ | 286 | $ | 248 | $ | 576 | $ | 457 | ||||||||||
Research and development on GAAP
basis |
$ | 76 | $ | 73 | $ | 70 | $ | 149 | $ | 134 | ||||||||||
Share-based compensation expense |
3 | 3 | 2 | 6 | 3 | |||||||||||||||
Research and development on
Non-GAAP basis |
$ | 73 | $ | 70 | $ | 68 | $ | 143 | $ | 131 | ||||||||||
Selling, general and
administrative on GAAP basis |
$ | 55 | $ | 50 | $ | 48 | $ | 105 | $ | 94 | ||||||||||
Share-based compensation expense |
5 | 3 | 3 | 8 | 7 | |||||||||||||||
Selling, general and
administrative on Non-GAAP basis |
$ | 50 | $ | 47 | $ | 45 | $ | 97 | $ | 87 | ||||||||||
Total operating expenses on GAAP
basis |
$ | 137 | $ | 129 | $ | 125 | $ | 266 | $ | 241 | ||||||||||
Amortization of intangible assets |
5 | 6 | 6 | 11 | 11 | |||||||||||||||
Share-based compensation expense |
8 | 6 | 5 | 14 | 10 | |||||||||||||||
Restructuring charges |
1 | | 1 | 1 | 2 | |||||||||||||||
Total operating expenses on
Non-GAAP basis |
$ | 123 | $ | 117 | $ | 113 | $ | 240 | $ | 218 | ||||||||||
Income from operations on GAAP
basis |
$ | 138 | $ | 142 | $ | 108 | $ | 280 | $ | 186 | ||||||||||
Amortization of intangible assets |
19 | 20 | 20 | 39 | 40 | |||||||||||||||
Share-based compensation expense |
9 | 7 | 6 | 16 | 11 | |||||||||||||||
Restructuring charges |
1 | | 1 | 1 | 2 | |||||||||||||||
Income from operations on
Non-GAAP basis |
$ | 167 | $ | 169 | $ | 135 | $ | 336 | $ | 239 | ||||||||||
Shares used in per share
calculation diluted on GAAP
basis |
252 | 250 | 246 | 252 | 244 | |||||||||||||||
Non-GAAP adjustment |
6 | 4 | 3 | 6 | 3 | |||||||||||||||
Shares used in per share
calculation diluted on
Non-GAAP basis(1) |
258 | 254 | 249 | 258 | 247 | |||||||||||||||
(1) | The shares used in the diluted per share calculations on a Non-GAAP basis exclude the impact of share-based compensation attributable to future services and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. |
AVAGO TECHNOLOGIES LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED
(IN MILLIONS)
CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED
(IN MILLIONS)
May 1, | October 31, | |||||||
2011 | 2010 (1) | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 596 | $ | 561 | ||||
Trade accounts receivable, net |
289 | 285 | ||||||
Inventory |
194 | 189 | ||||||
Other current assets |
49 | 52 | ||||||
Total current assets |
1,128 | 1,087 | ||||||
Property, plant and equipment, net |
285 | 281 | ||||||
Goodwill |
177 | 172 | ||||||
Intangible assets, net |
538 | 573 | ||||||
Other long-term assets |
49 | 44 | ||||||
Total assets |
$ | 2,177 | $ | 2,157 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 206 | $ | 198 | ||||
Employee compensation and benefits |
62 | 82 | ||||||
Accrued interest |
| 12 | ||||||
Capital lease obligations current |
2 | 2 | ||||||
Other current liabilities |
26 | 41 | ||||||
Current portion of long-term debt |
| 230 | ||||||
Total current liabilities |
296 | 565 | ||||||
Long-term liabilities: |
||||||||
Capital lease obligations non-current |
4 | 4 | ||||||
Other long-term liabilities |
86 | 83 | ||||||
Total liabilities |
386 | 652 | ||||||
Shareholders equity: |
||||||||
Ordinary shares, no par value |
1,518 | 1,450 | ||||||
Retained earnings |
276 | 59 | ||||||
Accumulated other comprehensive loss |
(3 | ) | (4 | ) | ||||
Total shareholders equity |
1,791 | 1,505 | ||||||
Total liabilities and shareholders equity |
$ | 2,177 | $ | 2,157 | ||||
(1) | Amounts for the year ended October 31, 2010 have been derived from audited financial statements as of that date. |
AVAGO TECHNOLOGIES LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED
(IN MILLIONS)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED
(IN MILLIONS)
Quarter ended | Two quarters ended | |||||||||||||||||||
May 1, | January 30, | May 2, | May 1, | May 2, | ||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net income |
$ | 135 | $ | 119 | $ | 90 | $ | 254 | $ | 128 | ||||||||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||||||||||||||
Depreciation and amortization |
38 | 41 | 40 | 79 | 79 | |||||||||||||||
Amortization of debt issuance costs |
| | | | 1 | |||||||||||||||
Loss on extinguishment of debt |
1 | 5 | | 6 | 8 | |||||||||||||||
Loss on disposal of property, plant and equipment |
1 | | | 1 | 1 | |||||||||||||||
Share-based compensation |
9 | 7 | 6 | 16 | 11 | |||||||||||||||
Tax benefits of share-based compensation |
| 8 | | 8 | | |||||||||||||||
Excess tax benefits from share-based compensation |
| (2 | ) | (1 | ) | (2 | ) | (1 | ) | |||||||||||
Changes in assets and liabilities, net of acquisition: |
||||||||||||||||||||
Trade accounts receivable |
2 | (5 | ) | (46 | ) | (3 | ) | (63 | ) | |||||||||||
Inventory |
9 | (14 | ) | (12 | ) | (5 | ) | (16 | ) | |||||||||||
Accounts payable |
45 | (30 | ) | 2 | 15 | 7 | ||||||||||||||
Employee compensation and benefits |
11 | (31 | ) | 13 | (20 | ) | 4 | |||||||||||||
Other current assets and current liabilities |
1 | (31 | ) | 14 | (30 | ) | (14 | ) | ||||||||||||
Other long-term assets and long-term liabilities |
(1 | ) | | 9 | (1 | ) | 11 | |||||||||||||
Net cash provided by operating activities |
251 | 67 | 115 | 318 | 156 | |||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Purchase of property, plant and equipment |
(19 | ) | (32 | ) | (18 | ) | (51 | ) | (27 | ) | ||||||||||
Acquisition and investments, net of cash acquired |
| (9 | ) | (1 | ) | (9 | ) | (1 | ) | |||||||||||
Proceeds from disposal of property, plant, and
equipment |
| | 1 | | 1 | |||||||||||||||
Net cash used in investing activities |
(19 | ) | (41 | ) | (18 | ) | (60 | ) | (27 | ) | ||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Debt repayments |
| (230 | ) | | (230 | ) | (364 | ) | ||||||||||||
Payment on capital lease obligation |
(1 | ) | (1 | ) | (1 | ) | (2 | ) | (1 | ) | ||||||||||
Issuance of ordinary shares |
22 | 22 | 15 | 44 | 19 | |||||||||||||||
Excess tax benefits from share-based compensation |
| 2 | 1 | 2 | 1 | |||||||||||||||
Dividend payments to shareholders |
(20 | ) | (17 | ) | | (37 | ) | | ||||||||||||
Net cash provided by (used in) financing activities |
1 | (224 | ) | 15 | (223 | ) | (345 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents |
233 | (198 | ) | 112 | 35 | (216 | ) | |||||||||||||
Cash and cash equivalents at the beginning of period |
363 | 561 | 144 | 561 | 472 | |||||||||||||||
Cash and cash equivalents at end of period |
$ | 596 | $ | 363 | $ | 256 | $ | 596 | $ | 256 | ||||||||||