|
NOTE 18 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Fairchild International and certain of Fairchild Semiconductor
Corporation's subsidiaries are guarantors under the 10 1/8% and 10 3/8%
Senior Subordinated Notes. Accordingly, presented below are condensed
consolidating balance sheets of Fairchild International as of December
31, 2000 and December 26, 1999 and related condensed consolidating statements
of operations and cash flows for Calendar 2000, Stub Year 1999, Fiscal
1999 and Fiscal 1998.
CONDENSED CONSOLIDATING BALANCE SHEETS
| |
December 31, 2000
|
|
 |
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
$ -
|
$ 374.5
|
$ -
|
$ 27.3
|
$ -
|
$ 401.8
|
| Accounts receivable, net |
-
|
53.7
|
5.1
|
166.2
|
-
|
225.0
|
| Inventories |
-
|
102.4
|
9.7
|
80.7
|
-
|
192.8
|
| Deferred income taxes |
-
|
46.5
|
0.8
|
-
|
-
|
47.3
|
| Other current assets |
-
|
1.6
|
3.9
|
4.0
|
-
|
9.5
|
|
| Total current
assets |
-
|
578.7
|
19.5
|
278.2
|
-
|
876.4
|
| Property, plant and equipment, net |
-
|
252.4
|
2.8
|
341.4
|
-
|
596.6
|
| Deferred income taxes |
5.9
|
3.9
|
9.6
|
(12.6)
|
-
|
6.8
|
| Intangible assets, net |
-
|
11.6
|
102.4
|
184.1
|
-
|
298.1
|
| Investment in subsidiary |
831.8
|
601.6
|
146.5
|
-
|
(1,579.9)
|
-
|
| Other assets
|
-
|
32.2
|
7.1
|
20.3
|
-
|
59.6
|
|
| Total assets |
$ 837.7
|
$ 1,480.4
|
$ 287.9
|
$ 811.4
|
$ (1,579.9)
|
$ 1,837.5
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Current portion of long- term debt |
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
| Accounts payable |
-
|
86.2
|
0.7
|
68.4
|
-
|
155.3
|
| Accrued expenses and other current
liabilities |
-
|
77.1
|
5.9
|
53.9
|
-
|
136.9
|
|
| Total current
liabilities |
-
|
163.3
|
6.6
|
122.3
|
-
|
292.2
|
| Long-term debt, less current portion |
-
|
705.2
|
-
|
-
|
-
|
705.2
|
| Net intercompany (receivable) payable |
-
|
(213.0)
|
(31.1)
|
244.1
|
-
|
-
|
| Other liabilities |
-
|
(6.9)
|
0.3
|
9.0
|
-
|
2.4
|
|
| Total liabilities |
-
|
648.6
|
(24.2)
|
375.4
|
-
|
999.8
|
|
| Commitments and contingencies |
|
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
|
| Class A common stock |
0.8
|
-
|
-
|
-
|
-
|
0.8
|
| Class B common stock |
0.2
|
-
|
-
|
-
|
-
|
0.2
|
| Additional paid-in capital |
801.1
|
-
|
-
|
-
|
-
|
801.1
|
| Accumulated earnings |
41.8
|
831.8
|
312.1
|
436.0
|
(1,579.9)
|
41.8
|
| Less treasury stock (at cost) |
(6.2)
|
-
|
-
|
-
|
-
|
(6.2)
|
|
| Total stockholders'
equity |
837.7
|
831.8
|
312.1
|
436.0
|
(1,579.9)
|
837.7
|
|
| Total liabilities
and stockholders' equity |
$ 837.7
|
$ 1,480.4
|
$ 287.9
|
$ 811.4
|
$(1,579.9)
|
$ 1,837.5
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
| |
Year Ended December 31, 2000
|
|
|
| |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiaries
|
Non- Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
| |
| |
| (In millions) |
|
| Revenue: |
|
|
|
|
|
|
| Net sales - trade |
$ -
|
$ 390.1
|
$ 42.3
|
$ 1,249.2
|
$ -
|
$1,681.6
|
| Net sales - intercompany |
-
|
1,063.3
|
19.2
|
97.8
|
(1,180.3)
|
-
|
| Contract manufacturing |
-
|
76.5
|
-
|
25.1
|
-
|
101.6
|
|
| Total revenue |
-
|
1,529.9
|
61.5
|
1,372.1
|
(1,180.3)
|
1,783.2
|
| Operating expenses: |
|
|
|
|
|
|
| Cost of sales |
-
|
121.2
|
31.0
|
926.5
|
-
|
1,078.7
|
| Cost of sales - intercompany |
-
|
1,085.0
|
18.3
|
77.0
|
(1,180.3)
|
-
|
| Cost of contract manufacturing |
-
|
54.5
|
-
|
10.8
|
-
|
65.3
|
| Research and development |
-
|
48.9
|
14.0
|
21.0
|
-
|
83.9
|
| Selling, general and administrative |
-
|
29.1
|
16.7
|
178.2
|
-
|
224.0
|
| Purchased in-process research and development |
-
|
5.8
|
-
|
3.2
|
-
|
9.0
|
| Restructuring and impairments |
-
|
(2.3)
|
(3.3)
|
-
|
-
|
(5.6)
|
|
| Total operating expenses |
-
|
1,342.2
|
76.7
|
1,216.7
|
(1,180.3)
|
1,455.3
|
|
| Operating income (loss) |
-
|
187.7
|
(15.2)
|
155.4
|
-
|
327.9
|
| Interest expense, net |
-
|
59.1
|
(0.2)
|
(0.9)
|
-
|
58.0
|
| Other income, net |
-
|
(0.8)
|
-
|
-
|
-
|
(0.8)
|
| Equity in subsidiary income |
(267.2)
|
(133.1)
|
(98.0)
|
-
|
498.3
|
-
|
|
| Income before income taxes |
267.2
|
262.5
|
83.0
|
156.3
|
(498.3)
|
270.7
|
| Provision (benefit) for income taxes |
(5.9)
|
(4.7)
|
(8.2)
|
16.4
|
-
|
(2.4)
|
|
| Net income |
$ 273.1
|
$ 267.2
|
$ 91.2
|
$ 139.9
|
$ (498.3)
|
$ 273.1
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
| |
Year Ended December 31, 2000
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| Cash flows provided by (used in) operating activities: |
$ -
|
$ 271.2
|
$ (70.3)
|
$ 180.2
|
$ 381.1
|
|
| Cash flows from investing activities: |
|
|
|
|
|
| Capital expenditures |
-
|
(134.0)
|
(0.2)
|
(167.7)
|
(301.9)
|
| Proceeds from sale of property, plant and equipment |
-
|
-
|
3.5
|
-
|
3.5
|
| Purchase of molds and tooling |
-
|
-
|
-
|
(6.6)
|
(6.6)
|
| Purchase of long term investments |
-
|
(7.2)
|
-
|
-
|
(7.2)
|
| Acquisitions, net of cash acquired |
-
|
(10.7)
|
(23.8)
|
-
|
(34.5)
|
| Investment (in) from affiliate |
(244.2)
|
153.4
|
90.8
|
-
|
-
|
|
| Cash provided by (used in)
investing activities |
(244.2)
|
1.5
|
70.3
|
(174.3)
|
(346.7)
|
|
| Cash flows from financing activities: |
|
|
|
|
|
| Repayment of long-term debt |
-
|
(133.6)
|
-
|
-
|
(133.6)
|
| Issuance of long-term debt |
-
|
120.2
|
-
|
-
|
120.2
|
| Proceeds from issuance of common stock, net |
248.7
|
-
|
-
|
-
|
248.7
|
| Purchase of treasury stock |
(4.5)
|
-
|
-
|
-
|
(4.5)
|
| Debt issuance costs |
-
|
(2.1)
|
-
|
-
|
(2.1)
|
|
| Cash provided by (used in)
financing activities |
244.2
|
(15.5)
|
-
|
-
|
228.7
|
|
| Net change in cash and cash equivalents |
-
|
257.2
|
-
|
5.9
|
263.1
|
| Cash and cash equivalents at beginning of period |
-
|
117.3
|
-
|
21.4
|
138.7
|
|
| Cash and cash equivalents at end of period |
$ -
|
$ 374.5
|
$ -
|
$ 27.3
|
$ 401.8
|
|
| Supplemental Cash Flow Information: |
|
|
|
|
|
| Cash paid (refunded) during the year for: |
|
|
|
|
|
| Income taxes |
$ -
|
$ 1.2
|
$ -
|
$ 4.5
|
$ 5.7
|
|
| Interest |
$ -
|
$ 72.6
|
$ -
|
$ -
|
$ 72.6
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
| |
December 26, 1999
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiary
|
Non- Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
$ -
|
$ 117.3
|
$ -
|
$ 21.4
|
$ -
|
$ 138.7
|
| Accounts receivable, net |
-
|
39.5
|
0.5
|
100.3
|
-
|
140.3
|
| Inventories |
-
|
93.0
|
10.3
|
63.0
|
-
|
166.3
|
| Other current assets |
-
|
8.4
|
0.2
|
5.1
|
-
|
13.7
|
|
| Total current assets |
-
|
258.2
|
11.0
|
189.8
|
-
|
459.0
|
| Property, plant and equipment, net |
-
|
168.2
|
4.1
|
203.5
|
-
|
375.8
|
| Deferred income taxes, net |
-
|
14.7
|
7.5
|
(18.4)
|
-
|
3.8
|
| Intangible assets, net |
-
|
7.5
|
26.5
|
227.4
|
-
|
261.4
|
| Investment in subsidiaries |
209.9
|
335.0
|
148.4
|
-
|
(693.3)
|
-
|
| Other assets |
-
|
25.8
|
1.0
|
10.8
|
-
|
37.6
|
|
| Total assets |
$ 209.9
|
$ 809.4
|
$198.5
|
$613.1
|
$(693.3)
|
$1,137.6
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
| Current portion of long-term debt |
$ -
|
$ 1.4
|
$ -
|
$ -
|
$ -
|
$ 1.4
|
| Accounts payable |
-
|
52.2
|
0.6
|
56.5
|
-
|
109.3
|
| Accrued expenses and other current liabilities |
-
|
58.4
|
5.2
|
32.4
|
-
|
96.0
|
|
| Total current liabilities |
-
|
112.0
|
5.8
|
88.9
|
-
|
206.7
|
| Long-term debt, less current portion |
-
|
717.2
|
-
|
-
|
-
|
717.2
|
| Net Intercompany (receivable) payable |
(3.3)
|
(231.1)
|
(33.0)
|
267.4
|
-
|
-
|
| Other liabilities |
-
|
1.4
|
-
|
(0.9)
|
-
|
0.5
|
|
| Total liabilities |
(3.3)
|
599.5
|
(27.2)
|
355.4
|
-
|
924.4
|
|
| Commitments and contingencies |
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
| Class A common stock |
0.6
|
-
|
-
|
-
|
-
|
0.6
|
| Class B common stock |
0.3
|
-
|
-
|
-
|
-
|
0.3
|
| Additional paid-in capital |
449.5
|
-
|
-
|
-
|
-
|
449.5
|
| Accumulated earnings (deficit) |
(231.3)
|
209.9
|
225.7
|
257.7
|
(693.3)
|
(231.3)
|
| Less treasury stock (at cost) |
(5.9)
|
-
|
-
|
-
|
-
|
(5.9)
|
|
| Total stockholders' equity |
213.2
|
209.9
|
225.7
|
257.7
|
(693.3)
|
213.2
|
|
| Total liabilities and stockholders'
equity |
$ 209.9
|
$ 809.4
|
$ 198.5
|
$ 613.1
|
$ (693.3)
|
$ 1,137.6
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
| |
Seven Months Ended December 26, 1999
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiary
|
Non-Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| Revenue: |
|
|
|
|
|
|
| Net sales - trade |
$ -
|
$ 116.8
|
$ 12.4
|
$ 584.8
|
$ -
|
$ 714.0
|
| Net sales - intercompany |
-
|
466.9
|
7.9
|
82.7
|
(557.5)
|
-
|
| Contract manufacturing |
-
|
72.2
|
-
|
-
|
-
|
72.2
|
|
| Total revenue |
-
|
655.9
|
20.3
|
667.5
|
(557.5)
|
786.2
|
| Operating expenses: |
|
|
|
|
|
|
| Cost of sales - trade |
-
|
23.1
|
8.5
|
468.3
|
-
|
499.9
|
| Cost of sales - intercompany |
-
|
493.0
|
7.7
|
56.8
|
(557.5)
|
-
|
| Cost of contract manufacturing |
-
|
51.4
|
-
|
-
|
-
|
51.4
|
| Research and development |
-
|
17.5
|
6.7
|
10.8
|
-
|
35.0
|
| Selling, general and administrative |
-
|
52.9
|
5.5
|
59.0
|
-
|
117.4
|
|
| Total operating expenses |
-
|
637.9
|
28.4
|
594.9
|
(557.5)
|
703.7
|
|
| Operating income (loss) |
-
|
18.0
|
(8.1)
|
72.6
|
-
|
82.5
|
| Interest expense, net |
4.4
|
52.0
|
-
|
(0.2)
|
-
|
56.2
|
| Equity in subsidiary income |
(25.7)
|
(57.1)
|
(55.1)
|
-
|
137.9
|
-
|
|
| Income before income taxes |
21.3
|
23.1
|
47.0
|
72.8
|
(137.9)
|
26.3
|
| Provision (benefit) for income taxes |
-
|
(2.6)
|
0.4
|
7.2
|
-
|
5.0
|
|
| Net income |
$ 21.3
|
$ 25.7
|
$ 46.6
|
$ 65.6
|
$ (137.9)
|
$ 21.3
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
| |
Seven Months Ended December 26, 1999
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiary
|
Non-Guarantor
Subsidiaries
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| Cash flows provided by (used in) operating activities: |
$ -
|
$ 97.0
|
$ (0.8)
|
$ 19.5
|
$ 115.7
|
|
| Cash flows from investing activities: |
|
|
|
|
| Capital expenditures |
-
|
(31.4)
|
(0.4)
|
(43.0)
|
(74.8)
|
| Proceeds from sale of property, plant and equipment |
-
|
-
|
0.9
|
-
|
0.9
|
| Purchase of molds and tooling |
-
|
-
|
-
|
(1.3)
|
(1.3)
|
| Refund of value added tax paid in connection with acquisition |
-
|
-
|
-
|
40.9
|
40.9
|
| Investment (in) from affiliate |
(192.2)
|
182.1
|
-
|
10.1
|
-
|
|
| Cash provided by (used in) investing activities |
(192.2)
|
150.7
|
0.5
|
6.7
|
(34.3)
|
|
| Cash flows from financing activities: |
|
|
|
|
| Repayment of long-term debt |
(154.4)
|
(191.4)
|
-
|
-
|
(345.8)
|
| Proceeds from issuance of common stock and from issuance of |
|
|
|
|
| stock options |
346.6
|
-
|
-
|
-
|
346.6
|
| Purchase of treasury stock |
-
|
(5.9)
|
-
|
-
|
(5.9)
|
| Net intercompany financing |
-
|
33.8
|
-
|
(33.8)
|
-
|
|
| Cash provided by (used in) financing activities |
192.2
|
(163.5)
|
-
|
(33.8)
|
(5.1)
|
|
| Net change in cash and cash equivalents |
-
|
84.2
|
(0.3)
|
(7.6)
|
76.3
|
| Cash and cash equivalents at beginning of period |
-
|
33.1
|
0.3
|
29.0
|
62.4
|
|
| Cash and cash equivalents at end of period |
$ -
|
$117.3
|
-
|
$ 21.4
|
$ 138.7
|
|
| Supplemental Cash Flow Information: |
|
|
|
|
| Cash paid (refunded) during the year for: |
|
|
|
|
| Income taxes |
$ -
|
$ (0.3)
|
$ -
|
$ 2.1
|
$ 1.8
|
|
| Interest |
$ -
|
$ 42.1
|
$ -
|
$ -
|
$ 42.1
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
| |
Year Ended May 30, 1999
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiary
|
Non-Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| Revenue: |
|
|
|
|
|
|
| Net sales - trade |
$ -
|
$ 177.1
|
$ 64.2
|
$412.8
|
$ -
|
$ 654.1
|
| Net sales - intercompany |
-
|
536.8
|
-
|
101.1
|
(637.9)
|
-
|
| Contract manufacturing - National Semiconductor |
-
|
81.0
|
-
|
-
|
-
|
81.0
|
|
| Total revenue |
-
|
794.9
|
64.2
|
513.9
|
(637.9)
|
735.1
|
| Operating expenses: |
|
|
|
|
|
|
| Cost of sales - trade |
-
|
57.1
|
39.7
|
421.6
|
-
|
518.4
|
| Cost of sales - intercompany |
-
|
596.9
|
-
|
41.0
|
(637.9)
|
-
|
| Cost of contract manufacturing - |
|
|
|
|
|
|
| National Semiconductor |
-
|
64.4
|
-
|
-
|
-
|
64.4
|
| Research and development |
-
|
26.1
|
10.8
|
2.4
|
-
|
39.3
|
| Selling, general and administrative |
-
|
62.9
|
13.8
|
28.4
|
-
|
105.1
|
| Purchased in-process research and development |
-
|
-
|
-
|
34.0
|
-
|
34.0
|
| Restructuring and impairments |
-
|
. 8.6
|
12.7
|
-
|
-
|
21.3
|
|
| Total operating expenses |
-
|
816.0
|
77.0
|
527.4
|
(637.9)
|
782.5
|
|
| Operating income (loss) |
-
|
(21.1)
|
(12.8)
|
(13.5)
|
-
|
(47.4)
|
| Interest expense, net |
11.3
|
54.1
|
4.4
|
2.0
|
-
|
71.8
|
| Equity in subsidiary (income) loss |
102.7
|
33.6
|
22.8
|
-
|
(159.1)
|
-
|
|
| Income (loss) before income taxes |
(114.0)
|
(108.8)
|
(40.0)
|
(15.5)
|
159.1
|
(119.2)
|
| Provision (benefit) for income taxes |
0.1
|
(6.1)
|
(1.2)
|
2.1
|
-
|
(5.1)
|
|
| Net income (loss) |
$ (114.1)
|
$ (102.7)
|
$ (38.8)
|
$ (17.6)
|
$ 159.1
|
$ (114.1)
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
| |
Year Ended May 30, 1999
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiary
|
Non-Guarantor
Subsidiaries
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| Cash flows provided by (used in) operating activities: |
$ -
|
$ (14.7)
|
$ (29.4)
|
$ 88.2
|
$ 44.1
|
|
| Cash flows from investing activities: |
|
|
|
|
|
| Capital expenditures |
-
|
(26.6)
|
(0.5)
|
(19.1)
|
(46.2)
|
| Proceeds from sale of property, plant and equipment |
-
|
1.0
|
30.2
|
-
|
31.2
|
| Purchase of molds and tooling |
-
|
-
|
-
|
(3.8)
|
(3.8)
|
| Refundable payment of value added tax associated
with acquisitions |
-
|
-
|
-
|
(40.9)
|
(40.9)
|
| Investment (in) from affiliate |
(50.0)
|
50.0
|
-
|
-
|
-
|
| Net intercompany investing |
-
|
(406.8)
|
-
|
406.8
|
-
|
| Acquisitions, net of cash acquired |
-
|
(8.1)
|
-
|
(406.8)
|
(414.9)
|
|
| Cash provided by (used in)
investing activities |
(50.0)
|
(390.5)
|
29.7
|
(63.8)
|
(474.6)
|
|
| Cash flows from financing activities: |
|
|
|
|
|
| Repayment of long-term debt |
-
|
(151.3)
|
-
|
-
|
(151.3)
|
| Issuance of long-term debt |
50.0
|
610.0
|
-
|
-
|
660.0
|
| Debt issuance costs |
-
|
(22.3)
|
-
|
-
|
(22.3)
|
|
| Cash provided by financing
activities |
50.0
|
436.4
|
-
|
-
|
486.4
|
|
| Net change in cash and cash equivalents |
-
|
31.2
|
0.3
|
24.4
|
55.9
|
| Cash and cash equivalents at beginning of period |
-
|
1.9
|
-
|
4.6
|
6.5
|
|
| Cash and cash equivalents at end of period |
$ -
|
$ 33.1
|
$ 0.3
|
$ 29.0
|
$ 62.4
|
|
| Supplemental Cash Flow Information: |
|
|
|
|
| Cash paid (refunded) during the year for: |
|
|
|
|
| Income taxes |
$ -
|
$ (2.0)
|
$ -
|
$ 2.0
|
$ -
|
|
| Interest |
$ -
|
$ 46.6
|
$ -
|
$ -
|
$ 46.6
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
| |
Year Ended May 31, 1998
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiary
|
Non-Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| Revenue: |
|
|
|
|
|
|
| Net sales - trade |
$ -
|
$ 222.1
|
$ 32.1
|
$ 381.6
|
$ -
|
$635.8
|
| Net sales - intercompany |
-
|
786.6
|
-
|
114.4
|
(901.0)
|
-
|
| Contract manufacturing - National
Semiconductor |
-
|
153.4
|
-
|
-
|
-
|
153.4
|
|
| Total revenue |
-
|
1,162.1
|
32.1
|
496.0
|
(901.0)
|
789.2
|
| Operating expenses: |
|
|
|
|
|
|
| Cost of sales - trade |
-
|
39.3
|
20.0
|
382.3
|
-
|
441.6
|
| Cost of sales - intercompany |
-
|
830.0
|
-
|
71.0
|
(901.0)
|
-
|
| Cost of contract manufacturing
- National Semiconductor |
-
|
117.1
|
-
|
-
|
-
|
117.1
|
| Research and development |
-
|
30.1
|
4.6
|
1.0
|
-
|
35.7
|
| Selling, general and administrative |
-
|
65.8
|
5.1
|
21.1
|
-
|
92.0
|
| Purchased in-process research
and development |
-
|
15.5
|
-
|
-
|
-
|
15.5
|
|
| Total operating expenses |
-
|
1,097.8
|
29.7
|
475.4
|
(901.0)
|
701.9
|
|
| Operating income |
-
|
64.3
|
2.4
|
20.6
|
-
|
87.3
|
| Interest expense, net |
9.8
|
43.0
|
1.8
|
(0.1)
|
-
|
54.5
|
| Equity in subsidiary income (loss) |
(28.7)
|
(16.9)
|
-
|
-
|
45.6
|
-
|
|
| Income before income taxes |
18.9
|
38.2
|
0.6
|
20.7
|
(45.6)
|
32.8
|
| Provision (benefit) for income taxes |
(3.2)
|
9.5
|
0.2
|
4.2
|
-
|
10.7
|
|
| Income before cumulative effect of change in accounting
principle |
22.1
|
28.7
|
0.4
|
16.5
|
(45.6)
|
22.1
|
| Cumulative effect of change in accounting principle,
net of tax effect of $0.8 million |
(1.5)
|
-
|
-
|
-
|
-
|
(1.5)
|
|
| Net income |
$ 20.6
|
$ 28.7
|
$ 0.4
|
$ 16.5
|
$ (45.6)
|
$ 20.6
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
| |
Year Ended May 31, 1998
|
|
|
| (In millions) |
Unconsolidated
Fairchild
Semiconductor
International, Inc.
|
Unconsolidated
Fairchild
Semiconductor
Corporation
|
Guarantor
Subsidiary
|
Non-Guarantor
Subsidiaries
|
Consolidated
Fairchild
Semiconductor
International, Inc.
|
|
| Cash flows provided by operating activities: |
$ -
|
$ 105.4
|
$ 0.4
|
$ 30.3
|
$ 136.1
|
|
| Cash flows from investing activities: |
|
|
|
|
| Capital expenditures |
-
|
(48.7)
|
(0.4)
|
(28.9)
|
(78.0)
|
| Purchase of molds and tooling |
-
|
-
|
-
|
(5.7)
|
(5.7)
|
| Acquisitions, net of cash acquired |
-
|
(116.8)
|
|
|
(116.8)
|
|
| Cash used by investing activities |
-
|
(165.5)
|
(0.4)
|
(34.6)
|
(200.5)
|
|
| Cash flows from financing activities: |
|
|
|
|
| Repayment of long-term debt |
-
|
(58.7)
|
-
|
-
|
(58.7)
|
| Issuance of long-term debt |
-
|
90.0
|
-
|
-
|
90.0
|
| Debt issuance costs |
-
|
(1.1)
|
-
|
-
|
(1.1)
|
|
| Cash provided by financing activities |
-
|
30.2
|
-
|
-
|
30.2
|
|
| Net change in cash and cash equivalents |
-
|
(29.9)
|
-
|
(4.3)
|
(34.2)
|
| Cash and cash equivalents at beginning of period |
-
|
31.8
|
-
|
8.9
|
40.7
|
|
| Cash and cash equivalents at end of period |
$ -
|
$1.9
|
$ -
|
$ 4.6
|
$ 6.5
|
|
| Supplemental Cash Flow Information: |
|
|
|
|
| Cash paid during the year for: |
|
|
|
|
| Income taxes |
$ -
|
$ 7.7
|
$ -
|
$ 1.2
|
$ 8.9
|
|
| Interest |
$ -
|
$ 43.8
|
$ -
|
$ -
|
$ 43.8
|
|
|
