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Second Quarter Fiscal Year 2017 Supplemental Financial Information January 26, 2017
Second Quarter Fiscal Year 2017
Supplemental Financial Information
Q2-17 Quarter Non-GAAP Results
* Non -GAAP, See appendix for GAAP to Non -GAAP reconciliation Shipments $887M
Diluted EPS* $1.523
Q2-17 Summary Balance Sheet and Cash Flow
*DSO = Current Net AR/ (Current Quarter Shipments / 91 ) , Inventory Turns = Cost of Goods Sold/ Average Inventory, Free Cash Flow = Net Cash Provided by Operating Activities –Net Capital
Expenditures. Numbers have been rounded
Cash and Investments $2.49B $2.49B $2.59B
Accounts Receivable, Net $613M $655M $664M
Net DSO (Shipment)* 63 days 76 days 68 days
Inventories $699M $703M $671M
Inventory Turns* 1.9x 1.6x 1.9x
Net Cash From Operating Activities $354M $170M $222M
Capital Expenditures, Net $8M $10M $9M
Free Cash Flow* $347M $160M $214M
Dividends Paid $81M $89M $85M4
26%WAFER FRONT -END SEGMENT REGIONDistribution of Q2 FY17 System Orders
Reconciliation of Non -GAAP Financial Measures
* Refer to “Reconciliation of Non -GAAP Financial Measures –Explanation of Non -GAAP Financial Measures” for detailed descripti ons and information for each reconciling item.
(1) Non-GAAP operating income and operating expenses includes the effects of the changes in the Company's Executive Deferred Savings Plan Program ("EDSP"). Changes in the
EDSP liability and asset are recorded in selling, general and administrative expense in operating expenses. The expense (benefit) associated with change in the liability included
in selling, general and administrative expense for the three months ended December 31, 2016, September 30, 2016 and December 31,2015 were $1.2 million, $5.8 million and
$6.8 million, respectively, and for the six months ended December 31, 2016 and December 31, 2015 were $7.0 million and ($3.3) million, respectively. The gains (losses), net
associated with the changes in the EDSP asset included in selling, general and administrative expense for the three months en dedDecember 31, 2016, September 30, 2016 and
December 31, 2015 were $0.8 million, $5.9 million and $6.9 million, respectively, and for the six months ended December 31, 2 016and December 31, 2015 were $6.7 million and
($3.1) million, respectively.For the three months ended For the six months ended
(In thousands, except per share amounts and percentages) December 31, 2016 September 30, 2016 December 31, 2015 December 31, 2016 December 31, 2015
GAAP net income $ 238,251 $ 178,101 $ 152,207 $ 416,352 $ 257,104
Adjustments to reconcile GAAP net income to non -GAAP net income*:
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