Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SUNEDISON, INC. | d595449d8k.htm |
| EX-23.1 - EX-23.1 - SUNEDISON, INC. | d595449dex231.htm |
| EX-99.2 - EX-99.2 - SUNEDISON, INC. | d595449dex992.htm |
Exhibit 99.1
Report of Independent Registered Public Accounting Firm
To SunEdison Semiconductor, Inc.:
We have audited the accompanying combined balance sheets of SunEdison Semiconductor, Inc. (the Company) as of December 31, 2012 and 2011, and the related statements of operations, comprehensive income (loss), equity, and cash flows for each of the years in the two-year period ended December 31, 2012. These combined financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these combined financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2012 and 2011, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2012, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
St. Louis, Missouri
September 8, 2013
1
Combined Statements of Operations
| For the Year Ended December 31, | For the Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2013 | 2012 | |||||||||||||
| (unaudited) | ||||||||||||||||
| In millions | ||||||||||||||||
| Net sales to non-affiliates | $ | 927.4 | $ | 1,051.3 | $ | 471.3 | $ | 454.5 | ||||||||
| Net sales to affiliates | 6.8 | 147.0 | 5.1 | 3.3 | ||||||||||||
| Cost of goods sold | 852.4 | 1,023.3 | 422.5 | 425.8 | ||||||||||||
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| Gross profit |
81.8 | 175.0 | 53.9 | 32.0 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing and administration |
100.7 | 129.9 | 48.4 | 52.2 | ||||||||||||
| Research and development |
33.4 | 38.2 | 18.7 | 16.1 | ||||||||||||
| Restructuring (reversals) charges (see Note 3) |
(149.6) | 284.5 | (5.5) | — | ||||||||||||
| Gain on receipt of property, plant and equipment (see Note 3) |
(31.7) | — | — | — | ||||||||||||
| Long-lived asset impairment charges (see Note 3) |
1.5 | 234.7 | — | — | ||||||||||||
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| Operating income (loss) | 127.5 | (512.3) | (7.7) | (36.3) | ||||||||||||
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| Non-operating expenses (income): | ||||||||||||||||
| Interest expense |
1.0 | 5.9 | 0.3 | 0.5 | ||||||||||||
| Interest income |
(0.7) | (1.0) | (0.2) | (0.4) | ||||||||||||
| Interest (income) expense, net - affiliates |
(2.2) | 1.8 | (0.8) | (0.9) | ||||||||||||
| Other, net |
3.1 | (0.8) | (4.1) | 1.4 | ||||||||||||
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| Total non-operating expenses (income) | 1.2 | 5.9 | (4.8) | 0.6 | ||||||||||||
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| Income (loss) before income tax expense |
126.3 | (518.2) | (2.9) | (36.9) | ||||||||||||
| Income tax expense | 3.6 | 37.4 | 18.5 | 1.8 | ||||||||||||
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| Net income (loss) | 122.7 | (555.6) | (21.4) | (38.7) | ||||||||||||
| Net (income) loss attributable to noncontrolling interests | (1.4) | (2.3) | (2.3) | 0.2 | ||||||||||||
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| Net income (loss) attributable to SunEdison Semiconductor, Inc. | $ | 121.3 | $ | (557.9) | $ | (23.7) | $ | (38.5) | ||||||||
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See accompanying notes to combined financial statements.
2
Combined Statements of Comprehensive Income (Loss)
| For the Year Ended December 31, | For the Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2013 | 2012 | |||||||||||||
| (unaudited) | ||||||||||||||||
| In millions | ||||||||||||||||
| Net income (loss) | $ | 122.7 | $ | (555.6) | $ | (21.4) | $ | (38.7) | ||||||||
| Other comprehensive (loss) income: | ||||||||||||||||
| Net translation adjustment |
(15.3) | 2.1 | (44.4) | (7.8) | ||||||||||||
| Actuarial loss and prior service costs |
(1.4) | (26.8) | — | (9.1) | ||||||||||||
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| Other comprehensive loss | (16.7) | (24.7) | (44.4) | (16.9) | ||||||||||||
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| Total comprehensive income (loss) | 106.0 | (580.3) | (65.8) | (55.6) | ||||||||||||
| Net (income) loss attributable to noncontrolling interests |
(1.4) | (2.3) | (2.3) | 0.2 | ||||||||||||
| Net translation adjustment attributable to noncontrolling interests |
(2.2) | 0.5 | 2.2 | — | ||||||||||||
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| Comprehensive income (loss) attributable to SunEdison Semiconductor, Inc. | $ | 102.4 | $ | (582.1) | $ | (65.9) | $ | (55.4) | ||||||||
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See accompanying notes to combined financial statements.
3
Combined Balance Sheets
| As of December 31, | As of June 30, | |||||||||||
| 2012 | 2011 | 2013 | ||||||||||
| (unaudited) | ||||||||||||
| In millions | ||||||||||||
| Assets |
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| Current assets: | ||||||||||||
| Cash and cash equivalents |
$ | 103.2 | $ | 50.3 | $ | 55.2 | ||||||
| Accounts receivable, net |
129.5 | 125.9 | 117.9 | |||||||||
| Accounts receivable, affiliate |
89.1 | 20.4 | 19.4 | |||||||||
| Inventories |
130.5 | 165.8 | 127.4 | |||||||||
| Deferred tax asset |
14.0 | 12.1 | 14.0 | |||||||||
| Prepaid and other current assets |
23.6 | 42.7 | 21.6 | |||||||||
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| Total current assets |
489.9 | 417.2 | 355.5 | |||||||||
| Property, plant and equipment, net | 789.9 | 791.9 | 736.3 | |||||||||
| Notes receivable, affiliate | 158.5 | 111.5 | 181.6 | |||||||||
| Other assets | 74.9 | 68.5 | 82.4 | |||||||||
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| Total assets |
$ | 1,513.2 | $ | 1,389.1 | $ | 1,355.8 | ||||||
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| Liabilities and Equity |
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| Current liabilities: | ||||||||||||
| Current portion of long-term debt |
$ | 3.4 | $ | 3.7 | $ | 2.9 | ||||||
| Accounts payable |
121.8 | 146.4 | 99.7 | |||||||||
| Accounts payable, affiliate |
102.0 | 59.7 | 111.9 | |||||||||
| Accrued liabilities |
57.8 | 63.3 | 52.6 | |||||||||
| Accrued wages and salaries |
32.9 | 31.7 | 32.8 | |||||||||
| Restructuring liabilities |
133.9 | 177.9 | 85.5 | |||||||||
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| Total current liabilities |
451.8 | 482.7 | 385.4 | |||||||||
| Long-term debt, less current portion | 12.6 | 17.8 | 9.5 | |||||||||
| Long-term debt, affiliate | 129.4 | 127.3 | 76.0 | |||||||||
| Pension and post-employment liabilities | 71.2 | 69.4 | 67.3 | |||||||||
| Restructuring liabilities | 6.3 | 118.5 | 4.3 | |||||||||
| Other liabilities | 27.9 | 34.4 | 36.9 | |||||||||
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| Total liabilities |
699.2 | 850.1 | 579.4 | |||||||||
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| Equity: | ||||||||||||
| Net Parent investment |
870.3 | 580.0 | 874.8 | |||||||||
| Accumulated other comprehensive loss |
(95.2) | (76.3) | (137.4) | |||||||||
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| Total SunEdison Semiconductor Inc. equity |
775.1 | 503.7 | 737.4 | |||||||||
| Noncontrolling interests | 38.9 | 35.3 | 39.0 | |||||||||
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| Total equity |
814.0 | 539.0 | 776.4 | |||||||||
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| Total liabilities and equity |
$ | 1,513.2 | $ | 1,389.1 | $ | 1,355.8 | ||||||
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See accompanying notes to combined financial statements.
4
Combined Statements of Cash Flows
| For the Year Ended December 31, | For the Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2013 | 2012 | |||||||||||||
| (unaudited) | ||||||||||||||||
| In millions | ||||||||||||||||
| Cash flows from operating activities: |
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| Net income (loss) |
$ | 122.7 | $ | (555.6) | $ | (21.4) | $ | (38.7) | ||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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| Depreciation and amortization |
118.7 | 144.3 | 58.3 | 59.0 | ||||||||||||
| Long-lived asset impairment charges |
— | 248.8 | — | — | ||||||||||||
| Gain on receipt of property, plant and equipment |
(31.7) | — | — | — | ||||||||||||
| Stock-based compensation |
13.0 | 20.5 | 6.5 | 5.8 | ||||||||||||
| (Benefit) provision for deferred taxes |
(14.2) | 15.1 | 1.8 | (8.8) | ||||||||||||
| Other |
(6.4) | (11.0) | (10.2) | (1.3) | ||||||||||||
| Changes in operating assets and liabilities: |
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| Accounts receivable |
(3.6) | 58.2 | 8.5 | (5.1) | ||||||||||||
| Inventories |
34.0 | (42.9) | (1.3) | 7.1 | ||||||||||||
| Amounts due from affiliates |
(71.6) | — | (18.1) | (8.5) | ||||||||||||
| Amounts due to affiliates |
41.3 | 8.2 | 40.0 | 19.0 | ||||||||||||
| Prepaid and other current assets |
20.1 | 3.7 | 1.1 | 14.4 | ||||||||||||
| Accounts payable and accrued liabilities |
(28.9) | (12.4) | (3.6) | (27.9) | ||||||||||||
| Pension and post-employment liabilities |
1.8 | 10.6 | (2.4) | 5.5 | ||||||||||||
| Restructuring liabilities |
(146.5) | 280.5 | (35.8) | (15.2) | ||||||||||||
| Working capital and other |
(2.6) | 3.8 | (3.6) | (25.7) | ||||||||||||
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| Net cash provided by (used in) operating activities |
46.1 | 171.8 | 19.8 | (20.4) | ||||||||||||
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| Cash flows from investing activities: |
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| Capital expenditures |
(95.2) | (187.1) | (62.1) | (45.8) | ||||||||||||
| Notes receivable from affiliates |
(46.7) | (110.0) | (21.4) | (45.0) | ||||||||||||
| Other |
(3.6) | — | — | (1.3) | ||||||||||||
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| Net cash used in investing activities |
(145.5) | (297.1) | (83.5) | (92.1) | ||||||||||||
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| Cash flows from financing activities: |
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| Principal payments on long-term debt |
(3.6) | (3.7) | (1.4) | (1.8) | ||||||||||||
| Net Parent investment |
154.6 | (50.6) | 21.3 | 132.2 | ||||||||||||
| Borrowings from affiliates |
2.1 | 1.6 | — | — | ||||||||||||
| Payments to noncontrolling interests |
— | (0.6) | — | — | ||||||||||||
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| Net cash provided by (used in) financing activities |
153.1 | (53.3) | 19.9 | 130.4 | ||||||||||||
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| Effect of exchange rate changes on cash and cash equivalents | (0.8) | 3.0 | (4.2) | 0.1 | ||||||||||||
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| Net increase (decrease) in cash and cash equivalents |
52.9 | (175.6) | (48.0) | 18.0 | ||||||||||||
| Cash and cash equivalents at beginning of period | 50.3 | 225.9 | 103.2 | 50.3 | ||||||||||||
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| Cash and cash equivalents at end of period | $ | 103.2 | $ | 50.3 | $ | 55.2 | $ | 68.3 | ||||||||
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| Supplemental disclosures of cash flow information: | ||||||||||||||||
| Interest paid, net of amount capitalized |
$ | 2.8 | $ | 3.6 | $ | 0.7 | $ | 0.4 | ||||||||
| Income taxes paid, net |
$ | 24.6 | $ | 11.3 | $ | 17.1 | $ | 11.8 | ||||||||
| Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||
| Accounts payable incurred (relieved) for acquisition of fixed assets |
$ | 3.4 | $ | (14.3) | $ | (17.7) | $ | 1.0 | ||||||||
See accompanying notes to combined financial statements.
5
Combined Statements of Equity
| Net Parent Investment |
Accumulated Other Comprehensive Loss |
Total SunEdison Semiconductor, Inc. Equity |
Noncontrolling Interests |
Total Equity |
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| In millions |
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| Balance December 31, 2010 |
$ | 1,167.6 | $ | (52.1) | $ | 1,115.5 | $ | 34.1 | $ | 1,149.6 | ||||||||||
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| Net (loss) income |
(557.9) | — | (557.9) | 2.3 | (555.6) | |||||||||||||||
| Other comprehensive loss |
— | (24.2) | (24.2) | (0.5) | (24.7) | |||||||||||||||
| Net transfers to SunEdison |
(29.7) | — | (29.7) | — | (29.7) | |||||||||||||||
| Net distributions to noncontrolling interests |
— | — | — | (0.6) | (0.6) | |||||||||||||||
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| Balance at December 31, 2011 |
$ | 580.0 | $ | (76.3) | $ | 503.7 | $ | 35.3 | $ | 539.0 | ||||||||||
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| Net income |
121.3 | — | 121.3 | 1.4 | 122.7 | |||||||||||||||
| Other comprehensive (loss) income |
— | (18.9) | (18.9) | 2.2 | (16.7) | |||||||||||||||
| Net transfers from SunEdison |
169.0 | — | 169.0 | — | 169.0 | |||||||||||||||
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| Balance at December 31, 2012 |
$ | 870.3 | $ | (95.2) | $ | 775.1 | $ | 38.9 | $ | 814.0 | ||||||||||
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| Net (loss) income (unaudited) |
(23.7) | — | (23.7) | 2.3 | (21.4) | |||||||||||||||
| Other comprehensive loss (unaudited) |
— | (42.2) | (42.2) | (2.2) | (44.4) | |||||||||||||||
| Net transfers from SunEdison (unaudited) |
28.2 | — | 28.2 | — | 28.2 | |||||||||||||||
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| Balance at June 30, 2013 (unaudited) |
$ | 874.8 | $ | (137.4) | $ | 737.4 | $ | 39.0 | $ | 776.4 | ||||||||||
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See accompanying notes to combined financial statements.
6