Additional Information for the Second Quarter 2016:

• In recent months the U.S. Securities and Exchange Commission (“SEC”) has increased its focus on the general use of non-GAAP financial metrics and reporting by U.S. listed companies.  In May 2016, the SEC issued new and revised Compliance & Disclosure Interpretations that relate to the reporting of non-GAAP financial measures by all U.S. listed companies ( www.sec.gov/divisions/corpfin/guidance/nongaapinterp.htm ).  As a result, NXP has re-evaluated its use of non-GAAP financial information, to ensure that when used in conjunction with its reported GAAP results, its non-GAAP financial information provides a clear reflection of the underlying operational performance of NXP.  Starting for the third quarter of 2016, NXP will limit its forward guidance to the following GAAP financial information; Revenue, Gross Profit, Operating Income, Financial Income and Expense, Non-Controlling Interest and Net Cash Paid for Income Taxes. In addition, NXP will limit the non-GAAP financial measures in its forward guidance and subsequent results to non-GAAP Gross Profit, non-GAAP Operating Income, and non-GAAP Financial Income and Expense.
• On April 27, 2016, NXP redeemed $100 million aggregate principal amount of its 3.5% senior notes due 2016, which left $200 million outstanding.
• On May 23, 2016, NXP issued and sold $850 million aggregate principal amount of 4.125% senior unsecured notes due 2021 and $900 million aggregate principal amount of 4.625% senior unsecured notes due 2023.  NXP used the net proceeds from the offering of the notes and cash on hand to repay $1,250 million aggregate principal amount of its existing secured term loan B due 2020 and $500 million aggregate principal amount of its outstanding senior secured notes due 2021
• A loss of $23 million relative to the early extinguishment of debt was recognized in relation to the aforementioned financing activities. 
• On June 14, 2016 NXP announced that it had reached an agreement to divest its Standard Products business to a consortium of financial investors consisting of Beijing Jianguang Asset Management Co., Ltd (“JAC Capital”) and Wise Road Capital LTD (“Wise Road Capital”). Under the terms of the agreement the consortium will pay approximately $2.75 billion for the business. The transaction is expected to close in the first quarter of 2017, pending all required regulatory approvals and employee representative consultations. 
• During the second quarter of 2016, SSMC, NXP’s consolidated joint-venture wafer fab with TSMC, reported second quarter 2016 operating income of $37 million, EBITDA of $51 million and a closing cash balance of $555 million. 
• During the second quarter of 2016, utilization in the combined NXP wafer-fabs averaged 91 percent.
• During the second quarter of 2016, NXP repurchased approximately 4.33 million shares for a total cost of approximately $365 million.  Weighted average number of shares outstanding (after deduction of treasury shares) for the three month period ended July 3, 2016 was 341.3 million and as the company reported a net loss, it excludes the incremental impact of dilutive potential common shares of 8.1 million.

Supplemental Information ($ millions, unaudited) ^{(1, 2, 3, 4)}