June 30, March 31, July 2,
Net Financial Position (in US$ millions) 2012 2012 2011
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Cash and cash equivalents 1,806 2,059 2,355
Marketable securities 259 154 426
Short-term deposits - - 151
Restricted cash - 3 3
Non-current restricted cash 4 4 5
Total financial resources 2,069 2,220 2,940
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Short-term borrowings and current portion of
long-term debt (1,173) (1,076) (825)
Long-term debt (362) (366) (1,045)
Total financial debt (1,535) (1,442) (1,870)
--------- --------- ---------
Net financial position 534 778 1,070
Net financial position, adjusted to account
for 50% investment in ST-Ericsson 1,153 1,267 1,293
Free cash flow is defined as net cash from operating activities minus net cash used in investing activities, excluding payment for purchases of and proceeds from the sale of marketable securities, short-term deposits and restricted cash. We believe free cash flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operating activities. Free cash flow is not a U.S. GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of free cash flow may differ from definitions used by other companies.
Free cash flow (in US$ millions) Q2 2012 Q1 2012 Q2 2011
------- ------- -------
Net cash from (used in) operating activities (37) 250 117
Net cash from (used in) investing activities (199) 113 289
Payment for purchases of (proceeds from sale of)
marketable securities, short-term deposits and
restricted cash, net 107 (265) (656)
Free cash flow (129) 98 (250)
